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orkmen's  Compensation  Law 


of  the 


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STATE  OF   NEW  YORK 


Revised,  With  Amendments,  May,  1916 
Amendments  Effective  June  1 ,  1916 


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1\  -  V        ;  Uc^w5, 


\V  orkmen's    Compensation    Law 


of  th< 


State    of   New  York 


Revised  With  Amendments,  May,  1916 


Copyright,  1916,  by 

F.  ROBERTSON  JONES 

New  York 


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CONTENTS 


Page 

Effect  of  1916  Amendments 5 

Digest  of  the  Workmen's  Compensation  Law 13 

Text  of  the  Workmen's  Compensation  Law 22 

Text  of  the  Law  Creating  the  State  Industrial  Commission 50 

Text  of  the  Law  Regulating  Insurance  Rates 59 

Text  of  the  Law  Authorizing  Mutual  Liability   Insurance 60 


342941 


EFFECT  OF  THE  1916  AMENDMENTS 

TO  THE  WORKMEN'S  COMPENSATION  LAW 

AND  SUPPLEMENTARY  LAWS 

I.     WORKMEN'S   COMPENSATION  LAW— 

1.  System  Provided  For. 

2.  Employments  Covered — 

(a)  By  Compulsion. 

(b)  By  Joint  Election. 

3.  Partial  Disability. 

4.  Total  Disability — Previous  Disability. 

5.  Death  Benefits. 

6.  Dependents. 

7.  Non-Resident  Aliens. 

8.  Appeal — 

(a)  To  Appellate  Division. 

(b)  To  Court  of  Appeals. 

9.  Commutations. 

10.  Preference. 

11.  How  Compensation  is  Secured. 

12.  Method  of  Payment  and  Proceedings  to  Collect, 

13.  Minors   and  Incompetent  Persons. 

14.  Where  Injury  is  Caused  by  Third  Party. 

15.  Liability  for  Damages. 

16.  Posting  Notices. 

17.  Insurance — 

(a)  General  Provisions. 

(b)  State  Managed  Insurance. 

18.  Penalties. 

19.  Miscellaneous. 

20.  Repealer. 

II.     INSURANCE  LAW-^ 

1.  Dividends. 

2.  Foreign  Mutual  Corporations. 


—  6  — 

I.     WORKMEN'S  COMPENSATION  LAW 

1.     SYSTEM  PROVIDED  FOR 

The  scope  of  the  Act  is  extended  so  as  to  enable  any  employer  not 
formerly  subject  to  the  Act  to  come  within  its  provisions  by  joint  election 
with  any  employee  (§2).  For  mode  of  election,  see  Digest,  infra,  under  head 
"HOW   ELECTED." 

2.     EMPLOYMENTS  COVERED 

(a)  By  Compulsion. — The  definition  of  the  term  "emi)loyee"  is  enlarged 
so  as  to  cover  any  employee  in  the  service  of  an  employer  whose  principal 
l)usiness  is  that  of  conducting  a  hazardous  employment.  Formerly  the  Act 
api)lied  only  to  emplovees  actually  engaged  in  a  hazardous  employment    (>$3 

The  hazardous  employments  in  the  various  groups  are  extended  (s$2) 
so  as  to  include  the  following: 

Group  2.     Repair  of  railways  not   included  in  group  one. 

Group  7.  Repair  of  telegraph  and  telephone  lines  not  included  in  groups 
five  and  six. 

Group  8.     Marine   wrecking. 

Group  11.     Subaqueous   or   caisson   repair. 

Group  12.  Repair  of  electric  light  and  electric  power  lines,  dynamos, 
or   appliances,  and  power  transmission  lines. 

Group  13.  Road  building,  curb  and  sidewalk  construction  or  repa'r: 
sewer  and  subway  rei)air;  street  cleaning,  ashes,  garbage  or  snow  rein)v;il; 
o)>eration  of  water  works. 

Group  14.  Bark  mills;  lund)er  yards;  uumufacture  of  barrels,  l.egi, 
vats  and  tubs. 

Group  17.     Cork    cutting. 

Group  18.     Oil  and  gas  wells. 

Group  19.     Manufacture   of   asbestos;   stone   crushing   or    grinding. 

Group  21.     Machine    shops,    including    repairs. 

Group  22.  Operation  and  repair  of  freight  and  passenger  elevators,  n  't 
included  in  other  groups;  window  cleaning;  heating  and  lighting. 

Group  23.  Manufacture  of  screws;  jewelry;  gold,  silver  and  ])lated  ware; 
articles  of  bone,  ivory  and  shell.  (Manufacture  of  screens  is  taken  out  of 
this  group,  but  retained  in  group  seventeen.) 

Group  24.     Blacksmiths;    horseshoers. 

Group  25.     Ice   harvesting,    ice    storage   and    ice    distribution. 

Group  26.     Manufacture   of  other    [than   printing]    ink. 

Group  27.     Bottling. 

Group  28.     Sewerage   disposal  plants. 

Group  29.     Storage  of  all  kinds  and  storage  for  hire. 

Group  30.  Meat  markets;  manufacture  or  preparation  of  gelatine,  ])aste 
or  wax. 

Group  32.     Furriers. 

Group  33.     Manufacture  of  dairy  j^roducts. 

Group  38.  Manufacture  of  other  articles  [than  those  enumerated]  from 
textiles  or  fabrics. 

Grouj)  40.  Engraving;  manufacture  of  moving  picture  machines  ;md 
films. 


—  7  — 

Group  41.  Public  garages,  livery,  boarding  or  sales  stables;  movers  of 
all  kinds. 

Group  42.  Steel  building  and  bridge  repair;  repair  of  elevators,  fire 
escapes,  boilers,  engines  or  heavy  machinery;  papering,  picture  hanging  and 
glazing;  construction,  repair  and  demolition  of  other  structures  than  build- 
ings and  bridges;  salvage  of  buildings  or  contents;  sanitary  lighting  or 
heating  installation  or  repair  (instead  of  "sanitary  or  heating  engineering")  ; 
junk  dealers. 

Group  43.  Any  employment  enumerated  in  the  foregoing  groups  and 
carried  on  by  the  State  or  a  municipal  corporation,  etc.,  even  though  not 
for  pecuniary  gain.  (This  does  not  change  the  old  law  except  to  remove  the 
inconsistency  of  including  public  employments  while  at  the  same  time  limiting 
employments  covered  to  those  carried  on  for  pecuniary  gain.) 

It  is  further  provided  that  "manufacture,"  "construction,"  "operation" 
and  "installation"  shall  include  "repair,"  "demolition"  and  "alteration"  (§3 
[13]). 

(b)  By  Joint  Election. — A  new  clause  is  added  to  Section  2,  under 
which  any  employer  not  carrying  on  any  of  the  hazardous  employments 
enumerated  therein,  or  who,  carrying  on  one  of  such  employments,  has  in 
his  employ  a  person  not  included  within  the  term  "employee"  as  defined 
by  Section  3,  may  by  joint  election  with  any  employee  become  subject  to 
the  Act.  {See  Digest,  infra,  "HOW  ELECTED.")  The  employments  which 
may  thus  be  brought  under  the  Act  by  joint  election  are  not  limited  to 
such  as  are  carried  on  by  the  employer  for  pecuniary  gain   (§3   [5]). 

3.     PARTIAL  DISABILITY 

The  thumb,  finger,  toe,  and  phalange  are  added  to  the  list  of  members, 
the  pernuinent  loss  of  the  use  of  which  is  to  be  considered  as  the  equivalent 
ot  the  loss  of  such  member.  Provision  is  newly  made  for  compensation 
not  to  exceed  $3,500,  in  the  discretion  of  the  Commission,  for  an  injury 
resulting  in  serious  facial  or  head  disfigurement   (§15   [3]). 

The  maximum  compensation  for  temporary  partial  disability  is  fixed,  as 
before,  at  $3,500,  but  is  further  limited  so  as  not  to  exceed,  when  combined 
with  the  employee's  decreased  earnings,  the  amount  of  wages  received  prior 
to   the  injury    (§15    [4]). 

4.     TOTAL  DISABILITY— PREVIOUS  DISABILITY 

Subdivision  7  is  added  to  Section  15,  providing  that  if  an  employee  who 
has  previously  been  partially  disabled  through  the  loss  of  a  hand,  an  arm, 
a  foot,  a  leg  or  an  eye,  incurs  permanent  total  disability  through  the  loss 
of  another  member  or  organ,  he  shall  receive,  after  the  cessation  of  the 
regular  payments  for  permanent  partial  disability,  and  in  addition  thereto, 
special  compensation  of  66  2/3%  of  his  average  weekly  wages  for  the  rest 
of  his  life.  For  such  additional  payments  a  special  fund  is  to  be  created 
by  requiring  insurance  carriers  to  pay  to  the  State  Treasurer  for  every  case 
of  injury  causing  death  in  which  there  are  no  dependents,  the  sum  of  $100 
(§15  [7]). 

5.     DEATH  BENEFITS 

Death  benefits  are  now  payable  to  grandchildren,  brothers,  sisters, 
parents  and  grandparents  if  there  be  no  surviving  wife  (or  dependent  hus- 
band)  or  child  under  eighteen,  instead  of  as  formerly,  only  where  the   pay- 


—  8  — 

ments  to  spouse  and  children  amount  to  less  in  the  aggregate  than  66  2/3% 
of  deceased's  average  wages;  and  the  compensation  to  each  dependent  parent 
or  grandparent  in  such  a  case  is  increased  from  15  to  25  per  cent  of  the 
average  wages   (§16   [4]). 

A  new  provision  requires  insurance  carriers  to  pay  to  the  State  Treasurer, 
in  every  case  of  death  where  there  are  no  dependents,  the  sum  of  $100 
(§15   [7]). 

See   also    caption    13,   "MINORS    AND    INCOMPETENT    PERSONS." 

6.     DEPENDENTS 

The  definition  of  the  term  "child"  is  extended  so  as  to  include  a  dependent 
step-child   (§3   [11]). 

7.     NON-RESIDENT   ALIENS 

Dependents  residing  in  any  foreign  country  are  limited  to  wife  and  chil- 
dren or,  if  there  be  none  of  these,  to  parent  or  grandparent  wholly  or 
partly  dependent  upon  deceased   for  a  year  prior  to  accident    (§17). 

8.     APPEAL 

(a)  To  Appellate  Division. — The  Commission  is  now  empowered,  in  its 
discretion,  to  certify  to  the  Appellate  Division  of  the  Supreme  Court,  Third 
Department,  upon  the  application  of  either  party,  questions  of  law  involved 
in  its  decision,  even  where  the  claim  is  made  against  the  State  Fund,  instead 
of  as  formerly,  only  where  the  claim  was  not  against  the  State  Fund   (§23). 

(b)  To  Court  of  Appeals. — An  appeal  may  now  be  taken  to  the  Court 
of  Appeals  without  the  consent  of  the  Appellate  Division  or  a  judge  of  the 
Court  of  Appeals,  in  all  cases  where  the  decision  of  the  Appellate  Division 
is  not  unanimous.  It  is  further  newly  provided  that  it  shall  not  be  necessary 
to  file  exceptions  to  the  rulings  of  the  Commission;  and  that  the  Commission 
need  not  file  a  bond  upon  an  appeal  by  it  to  the  Court  of  Appeals  (§23). 

9.     COMMUTATIONS. 

The  moneys  paid  into  the  State  Fund  by  employers  or  insurers  who 
have  been  permitted  or  required  to  discharge  their  liability  for  compensation 
in  any  particular  case  on  the  commutation  plan,  are  to  constitute  an 
aggregate  trust  fund,  to  be  kept  separate  and  apart  from  all  other  moneys 
of  the  State  Fund,  and  not  to  be  liable  for  any  expenses  of  administration 
other  than  those  incurred  in  the  administration  of  such  trust  fund.  Any 
lump  sum  paid  into  this  fund  must  include,  in  addition  to  the  amount 
payable  to  the  beneficiary,  a  sum  sufficient  to  cover  such  expenses  of 
administration   (§27). 

10.  PREFERENCE 

The  preference  or  lien  against  the  assets  of  the  employer  which  attaches 
to  the  right  of  compensation  granted  by  the  Act  is  extended  to  any  awards 
made  thereunder  (§34). 

11.     HOW  COMPENSATION  IS  SECURED 

Employers  who  carry  private  insurance  are  no  longer  required  to  file 
with  the  Commission  a  copy  of  the  contract  or  policy  of  insurance;  but  the 


—  9  — 

notice  of  such  insurance  to  be  filed  with  the  Commission  must  contain  in- 
formation regarding  the  policy  as  the  Commission  may  require   (§50    [2]). 

The  permission  granted  to  an  employer  to  secure  his  liability  by  fur- 
nishing proof  of  financial  ability,  etc.,  may  be  revoked  by  the  Conmiission 
at  any  time  for  good  cause  shown  (§50  [3]). 

Failure  to  secure  the  payment  of  compensation  is  made  a  misdemeanor, 
in  addition  to  the  civil  penalties  previously  attaching  to  such  default  (§52). 
See  caption  18,  "PENALTIES." 

12.  METHOD  OF  PAYMENT  AND  PROCEEDINGS  TO  COLLECT 

The  employer,  as  well  as  the  insurer,  may  now  be  made  a  defendant  in 
an  action  instituted  by  the  Commission  for  the  recovery  of  a  liquidated  claim 
for  damages  resulting  from  default  in  payment  of  compensation  within 
ten  days  after  demand  (§26).  A  new  paragraph  is  added  to  this  section, 
which  provides  that  upon  the  employer's  default  in  payment  for  a  period 
of  thirty  days,  any  party  in  interest  may  file  with  the  county  clerk  a 
certified  copy  of  the  Commission's  decision  awarding  compensation,  or 
changing  the  terms  of  a  previous  award,  whereupon  judgment  must  be 
entered  in  the  Supreme  Court  in  conformity  with  such  decision,  which  shall 
have  the  same  effect  as  a  judgment  duly  rendered  in  a  suit  determined  by 
such  court,  except  that  there  shall  be  no  appeal  therefrom  (§26). 

See  also  caption  4,  "TOTAL  DISABILITY— PREVIOUS  DISABIL- 
ITY," and  caption  13,  "MINORS  AND  INCOMPETENT  PERSONS." 

13.     MINORS  AND   INCOMPETENT  PERSONS 

A  minor  employee  is  to  be  deemed  siii  juris  for  the  purpose  of  making 
the  election  to  come  under  the  Act  now  made  available  to  employees  not 
engaged  in  hazardous  employments   (§2). 

Where  death  benefits  are  payable  to  a  minor  child,  the  Commission  may 
require  the  appointment  of  a  guardian  for  the  purpose  of  receiving  such 
compensation;  but  unless  the  Commission  so  requires,  the  appointment  of  a 
guardian  for  such  purpose  is  not  necessary   (§16    [2]). 

A  new  clause  is  added  to  Section  29,  which  provides  that  where  the 
dependents  of  an  employee  killed  by  the  negligence  or  wrong  of  a  third 
party  are  minors,  the  election  to  take  compensation  and  the  assignment  of 
the  cause  of  action  against  such  third  party,  or  the  notice  of  election  to 
pursue  a  remedy  against  the  latter,  as  the  case  may  be,  is  to  be  made  by 
such  minor  or  by  his  parent  or  guardian,  as  the  Commission  may  determine 
by  rule  in  each  case  (§29). 

14.     WHERE  INJURY  IS   CAUSED  BY  THIRD  PARTY 

The  term  "employee,"  in  Section  29,  is  substituted  for  "workman,"  thus 
bringing  the  term  within  the  definition  of  "employee"  in  Section  3;  and  the 
several  references  to  the  "person,  association  or  corporation"  liable  for 
compensation,  are  amplified  by  the  inclusion  of  the  term  "insurance  carrier." 

See    also    caption    13,   "MINORS    AND    INCOMPETENT    PERSONS." 

15.     LIABILITY    FOR    DAMAGES 

The  liability  of  an  employer  for  compensation  is  made  to  exclude  any 
other  liability  whatsoever,  to  the  employee,  his  [or  her]  personal  representa- 
tives, husband,  parents,  dependents,  next  of  kin  or  anyone  otherwise  entitled 


—  10  — 

to  recover  damages  at  common  law  or  otherwise,  on  account  of  the  employee's 
injury  or  death  (§11).  This  precludes  the  recovery  of  damages  by  the 
parent  or  husband  of  a  minor  employee  for  injury  or  death  on  the  ground 
of  loss  of  services. 

The  right  of  action  for  damages  against  an  emploj^er  who  has  failed 
to  secure  compensation  is  extended  to  the  legal  representatives  of  a  de- 
ceased employee,  as  well  as  to  his  dependents,  in  case  of  injury  resulting 
in  death  (§52). 

16.     POSTING  NOTICES 

Employers  to  whom  the  elective  features  of  the  Act  are  applicable  are 
required  to  signify  their  election  by  posting  notices  at  the  place  of  employ- 
ment, in  addition  to  filing  written  notice  thereof  with  the  Commission   (§2). 

17..  INSURANCE 

(a)  General  Provisions. — In  the  paragraph  relating  to  the  cancellation 
of  insurance  contracts,  the  term  "insurance  carrier"  is  substituted  for  the 
words  "stock  company  or  mutual  association,"  thus  bringing  the  State  Fund 
within  the  provisions  of  this  subdivision,  subject  to  the  special  proviso  that 
the  right  to  cancel  a  policy  in  the  State  Fund  is  to  be  exercised  only  for 
non-payment  of  premiums.  The  notice  required  to  be  given  prior  to  the 
cancellation  of  such  contracts  is  referred  to  as  a  "notice  of  cancellation" 
instead  of  as  formerly,  a  "notice  of  intention  to  cancel"    (§54   [5]). 

Insurance  carriers  are  permitted  to  issue  policies  covering,  in  addition 
to  employees,  employers  who  perform  labor  incidental  to  their  occupations, 
subject  to  certain  restrictions  as  to  the  estimation  of  their  wage  values 
(§54    [C]). 

A  new  section,  numbered  77,  is  added  to  Article  4  {inadvertently  desig- 
nated "article  seven"  in  the  amendatory  law),  which  provides  for  an  annual 
assessment  on  all  insurance  carriers,  including  the  State  Fund,  to  reimburse 
the  State  treasury  for  the  expenses  incurred  by  the  Commission  in  the 
administration  of  the  Act  during  the  preceding  fiscal  year.  The  amount  of  such 
assessment  is  to  be  in  direct  ratio  to  the  amount  of  compensation  or  payments 
made  by  each  insurance  carrier  during  the  preceding  fiscal  year,  and  the 
first  assessment  is  to  be  made  and  collected  as  soon  as  practicable  after 
July  1,  1917.  A  similar  })rovision  was  contained  in  the  old  law,  but  it  was 
incorporated  in  Section  *94,  Article  5,  relating  to  State  insurance,  although 
manifestly  intended  to  be  applicable  to  all  insurance  carriers.  Under  the 
provisions  of  Section  94,  which  have  been  stricken  out  in  the  amended  form 
of  this  section,  such  assessment  was  to  be  made  first  as  soon  as  practicable 
after  December  31,  1917,  for  the  preceding  calendar  year,  to  cover  only  the 
expense  incurred  in  connection  with  the  examination,  determination  and 
pa}  ment  of  claims,  and  to  be  added  to  the  payments  required  from  insurance 
carriers  in  the  settlement  of  claims  during  the   ensuing  year. 

See  also   caption   11,  "HOW   COMPENSATION   IS   SECURED." 

(b)  State  Insurance. — The  Commission  is  required  to  set  up  "reserves" 
(instead  of  "a  reserve")  adequate  to  meet  anticipated  losses,  etc.;  and  it 
is  further  newly  provided  that  such  reserves  are  to  be  computed  in  accord- 
ance with  rules  to  be  approved  by  the  Superintendent  of  Insurance   (§92). 

The  classes  of  securities  enumerated  in  Section  93,  as  amended,  in 
which  the  surplus  or  reserves  of  the  State  Fund  may  be  invested,  are  sub- 
stituted for  "securities  and  investments  authorized  for  investment  by  savings 
banks"    (as    provided   in   the   old   law).      Such   funds   may   be   loaned   on   the 


—  11  — 

pledge  of,  as  well  as  invested  in,  any  of  the  securities  mentioned.  The 
resolution  of  the  Commission  providing  for  such  investment  or  loan,  or  for 
the  sale  of  any  of  the  securities  purchased,  must  be  approved  by  the 
Superintendent  of  Insurance,  instead  of  by  the  Comptroller,  as  formerly  (§93). 
The  expense  of  administering  the  State  Fund  is  to  be  refunded  to  the 
State  treasury  by  the  Commission  beginning  with  the  month  of  July,  1917, 
and  annually  thereafter  in  such  month,  for  the  preceding  fiscal  year,  instead 
of  beginning  with  the  month  of  January,  1918,  and  annually  thereafter,  for 
the  preceding  calendar  year.  Such  expenses  are  to  be  inclusive  of  the 
expense  incurred  in  the  examination,  determination  and  payment  of  claims, 
instead  of  being  exclusive  of  such  item,  as  before.  As  noted  above,  under 
"General  Provisions,"  the  assessment  provision  has  been  eliminated  from 
Section  94  and  re-enacted,  with  some  modifications,  as  a  new  section  numbered 
77    (§94). 

A  new  provision  is  added  to  subdivision  3  of  Section  97,  whereby  the 
Commission  is  empowered  to  pay  a  dividend  to  an  employer  who  has  with- 
drawn from  the  State  Fund  in  any  case  where  he  would  have  become  entitled 
to  such  dividend  if  he  had  remained  in  the  Fund. 

One  of  the  earlier  drafts  of  the  amendatory  law  eliminated  from  Sec- 
tion 100  the  provision  for  assessments  on  employers  withdrawing  from  the 
State  Fund;  but  the  provision  was  restored  verbatim  in  the  final  draft  of  the 
bill  as  passed  by  the  legislature  and  signed  by  the  Governor,  thus  resulting 
in  the  re-enactment  of  Section  100  without  change.  The  assessment  clause 
having  thus  received  the  direct  and  positive  sanction  of  the  legislature,  the 
argument  sometimes  advanced  that  it  was  enacted  inadvertently,  is  clearly 
no  longer  tenable. 

A  new  section,  numbered  106,  is  added  to  Article  5,  which  requires 
the  Commission  to  report  to  the  Superintendent  of  Insurance  concerning 
the  State  Fund  in  accordance  with  Section  192  of  the  Insurance  I>aw,  and 
emi)owers  the  Superintendent  of  Insurance  to  examine  into  tlie  condition 
of  the  Fund  at  any  time   (§106). 

18.     PENALTIES 

Failure  to  secure  the  payment  of  compensation  is  made  a  misdemeanor 
(§52).  No  specific  punishment  being  prescribed.  Section  1937  of  the  Penal 
Law  is  applicable,  imposing  a  punishment  of  a  year's  imprisonment  or  $500 
fine,  or  both,   upon   conviction   of  a  misdemeanor. 

19.     MISCELLANEOUS 

Section  75,  requiring  the  Commission  to  make  annual  rejiort  to  the 
legislature,  has  been  re-enacted  without   change. 

20.     REPEALER 

The  amendatory  law  (Section  15)  repeals  all  acts  and  parts  of  acts  in- 
consistent therewith.  The  addition  of  the  elective  feature,  covering  all 
employments  not  embraced  within  the  compulsory  provisions,  would  seem 
to  render  superfluous  in  the  main,  the  old  compensation  law  of  1909  (Em- 
ployers' Liability  Law,  Ch.  31  of  the  Consolidated  Laws),  although  it  is  to  be 
noted,  however,  that  the  compensation  provisions  of  the  latter  law  are  avail- 
able to  farm  laborers  and  domestic  servants,  while  such  employees  are 
expressly  excluded  from  the  benefits  of  the  Workmen's  Compensation  Law 
proper    (§3    [4]).' 


—  12  — 

IL     INSURANCE  LAW* 

1.     DIVIDENDS 

A  dividend  declared  by  the  directors  of  a  mutual  employer's  liability 
and  workmen's  compensation  corporation  now  requires  the  approval  of  the 
Superintendent  of   Insurance   before  becoming   eifective    (§190). 

2.     FOREIGN  MUTUAL  CORPORATIONS 

A  foreign  mutual  insurance  corporation  writing  employers'  liability  or 
workmen's  compensation  insurance  is  required  to  maintain  a  surplus  over 
and  above  all  liabilities,  including  unearned  premiums  and  loss  reserves, 
of  at  least  $100,000;  otherwise  its  certificate  of  authority  is  subject  to 
revocation  by  the  Superintendent  of  Insurance   (§194). 


*This  synopsis  covers  only  the  amendments  to  that  portion  of  the  Insurance 
Law  which  is  reprinted   in  this  pamphlet. 


Digest  of  the  New  York  Workmen's 
Compensation  Law^ 


TITLE,  ETC. 


Chapter  816,  Laws  of  1913,  as  re-enacted  by  Chapter  41,  Laws  of  1914, 
and  amended  by  Chapter  316,  Laws  of  1914,  effective  July  1,  1914;  by 
Chapters  167  and  168,  Laws  of  1915,  effective  April  1,  Chapter  615,  effective 
May  12,  and  Chapter  674,  effective  May  22,  1915;  and  by  Chapter 
622,  effective  June  1,  1916;  being  "Chapter  67  of  the  Consolidated  Laws," 
and  entitled  "Workmen's  Compensation  Law." 

SYSTEM  PROVIDED   FOR 

Compensation  with  insurance  or  proof  of  financial  responsibility,  com- 
pulsory as  to  the  hazardous  employments  enumerated  (§§10,  50)  ;  elective  as 
to  others  (§2).  Supervised  by  State  Industrial  Commission,  superseding,  on 
May  22,  1915,  the  Workmen's  Compensation  Commission  (Art.  IV;  Ch.  674, 
§§4-7). 

HOW  ELECTED 

(Applies  to  non-hazardous   employments  only.) 

Emplojer  elects  by  posting  notice  at  place  of  employment  and  by  filing 
with  the  Commission  a  written  statement  of  acceptance  in  a  prescribed  form. 
Employee  is  deemed  to  have  accepted  in  the  absence  of  written  notice  to 
the  contrary  given  to  the  employer  and  filed  with  the  Commission  at  the 
time  of  hiring  or  within  twenty  days  after  employer's  election   (§2). 

HOW  ELECTION  CHANGED 

(Applies  to  non-hazardous   employments   only.) 

Employer  may  withdraw  his  election  by  filing  written  notice  with  the 
Commission  at  least  sixty  days  prior  to  the  expiration  of  any  yearly  period 
(§2).     No  provision  for  change  of  employee's  election. 

ALTERNATIVE  LIABILITY 

No  provision  as  to  alternative  liability  of  employer  who,  not  being 
subject  to  the  comi)ulsory  features  of  the  Act,  does  not  elect  to  come  there- 
under. 

EMPLOYMENTS  COVERED 

Public  and  private,  in  the  service  of  an  employer  whose  principal  busi- 
ness is  that  of  conducting  any  of  the  hazardous  employments  enumerated 
for    pecuniary    gain,    except    farm    labor    and    domestic    service    (§§2,    [3-5]. 


*The  headings  of  this  Digest  conform  in  substance  and  order  with  those 
of  the  "Digest  of  Worl<men's  Compensation  Laws  in  the  United  States  and 
Territories"  (compiled  by  F.  Robertson  Jones  and  published  by  the  Workmen's 
Compensation  Publicity  Bureau,  80  Maiden  Lane,  New  York  City) — so  that  the 
former  supplements  the  latter. 


—  14  — 

Non-hazardous  employments  may  be  brought  under  the  Act  by  joint  election 
(§2).  Kenny  v.  Union  Ry.  Co.,  152  N.  Y.  S.  117;  De  La  Gardelle  v.  Hampton 
Co.,  153  N.  Y.  S.  162;  Smith  v.  Price,  id.  221;  McQueeney  v.  Sutphen  §•  Hyer, 
id.  554;  Kohler  v.  Frohmann,  id.  559;  In  re  Rheinwald,  id.  598;  Costello  v. 
Taylor,  217  N.  Y.  179,  111  N.  E.  755;  Powley  v.  Vivian  ^  Co.,  154  N.  Y.  S.  426; 
Bargey  v.  Massaro  Macaroni  Co.,  155  N.  Y.  S.  1076;  Group  1 — De  Voe  v. 
N.  Y.  State  Rys.,  169  A.  D.  472,  155  N.  Y.  S.  12;  Group  8—Edwardsen  v. 
Jarvis  Lighterage  Co.,  168  A.  D.  368,  153  N.  Y.  S.  391;  Group  10— Jensen  v. 
Southern  Pacific  Co.,  215  N.  Y.  514;  Tomassi  v.  Christensen,  156  N.  Y.  S. 
905;  Group  11— Mazzarisi  v.  Ward  ^  Tully,  156  N.  Y.  S.  964;  Group  28— 
Tamassi  v.  Christensen,  156  N.  Y.  S.  905;  Larsen  v.  Paine  Drug  Co.,  155 
N.  Y.  8.  759;  Group  29— Mihm  v.  Hussey,  155  N.  Y.  8.  860;  Sickles  v.  Ballston 
Storage  Co.,  156  N.  Y.  S.  864;  Group  30— Newman  v.  Newman,  155  N.  Y.  8. 
665;  Group  33 — Aylesworth  v.  Phoenix  Cheese  Co.,  155  N.  Y.  S.  916;  Group 
41 — Hendricks  v.  Seeman  Bros.,  155  N.  Y.  8.  638;  Newman  v.  Newman,  id. 
665;  Wilson  v.  Dorflinger,  id.  857;  Dale  v.  Saunders  Bros.,  157  N.  Y.  8.  1062; 
Group  42 — Gleisner  v.  Gross  ^'  Herbener,  155  N.  Y.  S.  946. 

EMPLOYMENT  IN  INTERSTATE  COMMERCE 
Act  applies  to  employers  and  employees  engaged  in  intrastate,  and 
also  in  interstate  or  foreign  commerce,  for  whom  a  rule  of  liability  or  method 
of  compensation  is  established  by  Congress,  only  to  the  extent  that  their 
nuitual  connection  with  intrastate  work  is  distinguishable  from  interstate 
or  foreign  commerce;  but  such  employer  and  his  employees  working  only 
within  the  State  may,  subject  to  approval  by  Commission  and  so  far  as  not 
forbidden  by  act  of  Congress,  accept  provisions  of  Act  (§114).  Edwardsen 
V.  Jarvis  Lighterage  Co.,  153  N.  Y.  S.  391 ;  Winfield  v.  N.  Y.  C.  ^  H.  R.  R.  Co., 
id.  499,  affd.  216  N.  Y.  284;  Jensen  v.  Southern  Pacific  Co.,  215  N.  Y.  514; 
Moore  v.  Lehigh  Valley  R.  Co.,  154  N.  Y.  S.  620;  Fairchild  v.  Penna.  R.  Co., 
155  iY.  Y.  S.  751;  White  v.  N.  Y.  C,  etc.,  R.  Co.,  169  A.  D.  903,  afd.  216 
N.  Y.  653. 

INJURIES  COVERED 

Accidental  personal  injuries  arising  out  of  and  in  course  of  employment, 
and  such  disease  or  infection  as  may  result  therefrom,  unless  due  to  intent 
to  injure  self  or  another  or  to  intoxication  while  on  duty  (§§10,  3  [7]). 
Shinnick  v.  Clover  Farms  Co.,  152  N.  Y.  8.  649;  Smith  v.  Price,  153  N.  Y.  8. 
221;  Fredenburg  v.  Empire  United  Rys.,  154  N.  Y.  8.  351;  Moore  v.  Lehigh 
Valley  R,  Co.,  id.  620;  Powley  v.  Vivian  ^  Co.,  id.  436;  De  Voe  v.  N.  Y.  State 
Rys.,  155  N.  Y.  8.  12;  Hendricks  v.  Seeman  Bros.,  id.  638;  Newman  v.  New- 
man, id.  665;  De  Filippis  v.  Falkenberg,  id.  761;  Kingsley  v.  Donovan,  id.  801; 
Plass  V.  Central  N.  E.  Ry.  Co.,  id.  854;  Martucci  v.  Hills  Bros.  Co.,  156 
N.  Y.  8.  833;  Rist  v.  Larkin  ^  Sangster,  id.  875;  Collins  v.  Bklyn.  Union  Gas 
Co.,  id.  957;  Mazzarisi  v.  Ward  ^  Tully,  id.  964;  Dale  v.  Saunders  Bros., 
157  N.  Y.  S.  1062;  White  v.  N.  Y.  Central  R.  Co.,  169  A.  D.  903,  afd.  216 
N.  Y.  653. 

NOTICE  OF  INJURY  AND  CLAIM  FOR  COMPENSATION 

Written  notice  containing  prescribed  particulars  must  be  served  on 
employer  and  Commission  within  10  days  after  disability  or  30  days  after 
death.  Failure  to  do  so  bars  claim,  unless  excused  by  Commission  (§18). 
Claim  must  be  made  within  one  year  after  injury  or  death  (§28). 

WAITING  PERIOD 
No  comj^ensation  allowed  for  first  fourteen  days  of  disability   (§12). 


—  16  — 

MEDICAL  AND  SURGICAL  AID 

Such  medical  aid,  including  crutches,  apparatus,  etc.,  as  required  or 
requested  by  employee,  must  be  furnished  by  employer  during  60  days  after 
injury.  Charges  therefor  are  subject  to  regulation  by  Commission  and  limited 
to  those  that  prevail  in  community  for  similar  treatment  of  persons  of  like 
standard  of  living   (§13). 

COMPENSATION   FOR   TOTAL   DISABILITY 

Sixty-six  and  two-thirds  per  cent,  of  average  weekly  wages;  maximum 
$15,  minimum  $5,  or  full  M'ages,  per  week;  if  permanent,  for  life;  if  temporary, 
during  disability  but  not  to  exceed  in  aggregate  $3,500.  Certain  severe 
injuries  presumed  to  constitute  permanent  total  disability  (§15  [1,  2,  5,  6]). 
Schwab  V.  Empormm  Forestry  Co.,  153  N.  Y.  S.  234,  affd.  216  N.  Y.  712; 
Fredenhurg  v.  Empire  United  Rys.,  154  N.  Y.  S.  351,  168  A.  D.  618. 

COMPENSATION    FOR    PARTIAL  DISABILITY 

Special  schedule  for  certain  injuries  in  lieu  of  other  compensation;  for 
loss  of  a  hand,  arm,  foot,  leg  or  eye,  maximum  $20,  minimum  $5  or  full  wages 
per  week.  In  other  cases,  66  2/3%  of  reduction  in  earning  capacity  during 
disability.  Except  for  injuries  specified  above,  maximum  $15,  minimum  $5 
or  full  wages,  per  week;  but  in  case  of  temporary  partial  disability  not  to 
exceed  in  aggregate  $3,500  or,  when  combined  with  decreased  earnings, 
amount  of  wages  at  time  of  injury  (§15  [3-6]).  In  re  Petrie,  151  N.  Y.  S. 
307;  215  N.  Y.  335;  Fredenhurg  v.  Empire  United  Rys.,  154  N.  Y.  S.  351; 
Rockwell  V.  Lewis,  id.  893;  Ciinninffham  v.  Buffalo  Rolling  Mills,  155  N.  Y.  S. 
797;  Feinman  v.  Albert  Mfg.  Co.,  id.  909. 

COMPENSATION  FOR  DEATH 

Reasonable  funeral  expenses,  maximum  $100.  30%  of  wages  to  wife  or 
dependent  husband  during  widowhood  or  dependency  (two  years'  benefits  to 
widow  upon  remarriage),  and  10%  additional  for  each  child  under  18.  If 
there  be  no  widow  or  dependent  widower,  15%  to  each  child.  15%  each  to 
dependent  grandchildren,  brothers  and  sisters  under  18  and  25%  each  to 
parents  and  grandparents,  subject  to  preference  of  widow  or  dependent 
widower  and  children  for  their  full  benefits.  Total  limited  to  66  2/3%  of 
wages.  Excess  of  wages  over  $100  per  month  not  to  be  reckoned  in  com- 
puting death  benefits  (§16).  If  there  are  no  dependents,  $100  must  be  paid 
to  State  Treasurer  for  special  fund  mentioned  under  "PREVIOUS  DIS- 
ABILITY," infra.  (§15  [7]).  Friscia  v.  Drake  Bros.  Co.,  153  N.  Y.  S.  392; 
Woodcock  V.  Walker,  155  N.  Y.  S.  702;  Walz  v.  Holbrook,  etc.,  Corpn.,  id.  703. 

EFFECT    OF    PREVIOUS    DISABILITY 

Previous  disability  is  not  to  preclude  compensation  for  later  injury  nor 
for  death  resulting  therefrom;  but  in  determining  compensation  for  later 
injury  or  death,  average  weekly  wages  to  be  such  sum  as  reasonably  rep- 
resents earning  capacity  at  time  of  later  injury.  Compensation  for  later 
injury  not  to  exceed  amount  allowed  for  such  injury  considered  by  itself 
and  not  in  conjunction  with  previous  disability  (§15  [6]).  Where  total 
disability  results  from  the  loss  of  a  member  or  organ  ensuing  upon  the 
previous   loss  of  a  hand,  arm,   foot,  leg  or   eye,   additional  compensation   of 


—  16  — 

66  2/3%  for  life  is  payable  out  of  a  special  State  Fund  created  for  that 
purpose  (§15  [7]).  Schwab  v.  Emp.  Forestry  Co.,  153  N.  Y.  S.  234,  affd.  216 
N.  Y.  712. 

AVERAGE  WAGES— HOW  COMPUTED 

Average  weekly  wages  to  be  1/52  of  average  annual  earnings;  later  to 
be  300  times  average  daily  wage  during  preceding  year,  if  employed  sub- 
stantially the  whole  year,  otherwise  300  times  average  daily  wage  of  another 
employee  in  same  occupation  and  locality.  If  injured  employee  is  a  minor 
whose  wages  would  normally  be  expected  to  increase,  this  fact  may  be  taken 
into  consideration  (§14).  Wages  to  include  reasonable  value  of  board, 
lodging,  etc.  (§3  [9]).  Fredenburg  v.  Empire  United  Rys.,  154  N.  Y.  S. 
351;  Kilberg  v.   Vitch,  156  N.  Y.  8.  971. 

WHO  ARE  DEPENDENTS 

Dependency  not  defined;  to  be  determined  in  accordance  with  conditions 
at  time  of  accident.  Beneficiaries  are  limited  to  widow  or  dependent  widower, 
children  (posthumous,  legally  adopted  and  step-children  included),  de- 
pendent grandchildren,  brothers  and  sisters  under  18  years  of  age  and 
dependent  parents  and  grandparents  (§§3  [11],  16).  Friscia  v.  Drake 
Bros.  Co.,  153  N.  Y.  8.  392;  Hendricks  v.  8eeman  Bros.,  155  N.  Y.  8.  638; 
Walz  V.  Holbrook,  etc.,  Corpn.,  id.  703;  Rhymer  v.  Hueber  Bldg.  Co.,  156 
N.  Y.  8.  903. 

NON-RESIDENT   ALIENS 

Compensation  to  aliens  not  residents  (or  about  to  become  non-residents) 
of  the  United  States  or  Canada,  to  be  the  same  as  provided  for  residents; 
but  Commission  may,  or  upon  application  of  insurer,  must,  commute  future 
installments  to  a  lump  sum  equal  to  one-half  the  present  value  thereof. 
Dependents  residing  in  any  foreign  country  are  limited  to  wife  and  children 
or,  if  there  be  none  of  these,  to  parent  or  grandparent  wholly  or  partly 
dependent  upon  deceased  for  a  year  prior  to  accident   (§17). 

MEDICAL  EXAMINATION 

Injured  employee  must  submit  to  medical  examination  from  time  to  time 
when  requested  by  Commission,  as  may  be  provided  by  its  rules.  Insurer 
and  employee  may  have  their  respective  physicians  present.  Refusal  to 
submit  forfeits  the  right  to  compensation  for  period  of  refusal   (§19). 

SETTLEMENT  OF  CLAIMS  AND  DISPUTES 

After  expiration  of  first  14  days  of  disability,  terras  of  compensation 
may  be  settled  by  agreement  between  employer  and  employee,  subject  to 
approval  of  Commission.  In  case  of  failure  to  agree  within  10  days  after 
presentation  of  claim,  it  may  be  presented  to  Commission.  Upon  application 
of  either  party.  Commission  must  order  a  hearing  and  may  appoint  arbitra- 
tion committee  for  that  purpose.  Decision  of  Commission  is  final  as  to  facts 
(§20).  Goldstein  v.  Centre  Iron  Works,  153  N.  Y.  8.  224;  Powley  v.  Vivian 
^  Co.,  154  N.  Y.  8.  426;  Carroll  v.  Knickerbocker  Ice  Co.,  155  N.  Y.  8.  1; 
Fairchild  v.  Penna.  R.  Co.,  id.  751;  Cunningham  v.  Buffalo  Rolling  Mills, 
id.  797;  Gardener  v.  Horseheads  Constr.  Co.,  156  N.  Y.  8.  899. 


—  17  — 

RIGHT   OF   APPEAL^ 

Within  30  days  after  Commission's  decision,  appeal  may  be  taken  to 
the  Appellate  Division,  Third  Department.  Commission  may  also,  upon 
application  of  either  party,  certify  questions  of  law  to  Appellate  Division. 
Further  appeal  lies  to  Court  of  Appeals  as  in  other  cases,  except  that  where 
the  decision  of  the  Appellate  Division  is  not  unanimous,  it  is  not  necessary 
to  obtain  the  consent  of  the  Appellate  Division  or  of  a  judge  of  the  Court 
of  Appeals,  as  a  precedent  condition  (§23).  Kenny  v.  Union  Ry.  Co.,  162 
N.  Y.  S.  117;  Goldstein  v.  Centre  Iron  Works,  153  N.  Y.  S.  224;  In  re  Rhein- 
tcalcl,  id.  598;  Hendricks  v.  Seeman  Bros.,  155  N.  Y.  S.  638;  Crockett  v.  State 
Ins.  Fund,  id.  692;  Plass  v.  Central  N.  E.  Ry.  Co.,  id.  854;  Gleisner  v.  Gross 
^  Herbener,  id.  946;  Rhymer  v.  Hueber  Bldg.  Co.,  156  N.  Y.  8.  903;  Collins 
V.  Bklyn.   Union  Gas  Co.,  id.  957. 

MODIFICATION    OF    AGREEMENTS   AND   AWARDS 

Upon  its  own  motion  or  upon  application  of  any  party  in  interest,  at 
any  time,  the  Commission  may  review  and  modify  an  award  (§22).  The 
Commission's  jurisdiction  is  continuing,  and,  from  time  to  time,  it  may 
modify  any  former  orders  or  findings  as  it  may  deem  just  (§74). 

COMMUTATIONS 

The  Commission  may  commute  periodical  payments  to  one  or  more  lump 
sums  whenever,  in  the  interest  of  justice,  it  shall  so  deem  advisable  (§25). 
Whenever  it  is  possible  to  compute  the  present  value  of  future  payments. 
Commission  may  permit  or  require  payment  of  the  amount  thereof,  together 
with  a  sum  sufficient  to  cover  expenses  of  administration,  into  a  special  trust 
fund,  administered  by  the  Commission,  but  kept  separate  from  other  moneys 
of  the  State  Fund   (§27). 

PREFERENCE 

A  claim  for  compensation  and  any  award  thereunder  has  the  same  pref- 
erence or  lien  without  limit  of  amount  as  a  claim  for  unpaid  wages  for 
labor    (§34). 

ASSIGNMENTS   AND   EXEMPTIONS 

Claims  for  compensation  may  not  be  assigned,  released  or  commuted, 
except  as  provided  in  Act.  Compensation  is  exempt  from  all  claims  of 
creditors  and  from  levy,  execution,  attachment,  etc.  (§33),  Bloom  v.  Jaffe. 
157  N.  Y.  8.  926. 

HOW  COMPENSATION  IS  SECURED 

Insurance  in  State  Fund  or  in  some  authorized  company  or  mutual 
association  is  compulsory,  with  alternative  to  employer  to  carry  his  own  risks 
upon  proof  of  financial  responsibility  (§50).  Kenny  v.  Union  Ry.  Co.,  152 
N.  Y.  8.  117;  Winfield  v.  N.  Y.  C.  ^  H.  R.  R.  Co.,  153  N.  Y.  8.  499,  affd.  216 
N.  Y.  284;  McQueeney  v.  8ufphen  ^  Hyer,  153  N.  Y.  8.  554. 

METHOD  OF  PAYMENT  AND  PROCEEDINGS  TO  COLLECT 

Compensation  is  payable  by  employer  periodically  in  same  manner  as 
wages.     If  employer  defaults  payment   for   10   days,   insurer   becomes  liable 


—  18  — 

therefor,  and  if  payment  be  not  made  within  10  days  after  demand  by 
employee  or  dependent,  amount  due  is  a  liquidated  claim  for  damages  against 
employer  or  insurer,  which,  with  added  penalty  of  50%,  may  be  recovered 
in  action  by  Commission.  If  payments  not  immediately  due  may  be  com- 
puted to  present  value,  Commission  may  sue  for  full  amount,  with  penalties. 
If  employer  defaults  payment  for  30  days,  any  party  in  interest  may  file 
with  the  county  clerk  a  certified  copy  of  the  Commission's  decision  awarding 
compensation,  whereupon  judgment  must  be  entered  in  the  Supreme  Court 
accordingly,  which  has  the  same  effect  as  though  rendered  in  an  action  duly 
tried   (§§25,  26).     Woodcock  v.   Walker,  155  N.   Y.  8.  702. 

ATTORNEYS'  LIENS  AND  FEES 

Claims  for  legal  services  and  for  services  of  physicians  or  hospitals  are 
not  enforceable,  unless  approved  by  Commission.  If  so  approved,  they  be- 
come liens  upon  award,  but  payable  only  in  manner  fixed  by  Commission 
(§24).     Bloom  V.  Jaffe,  157  N.  Y.  S.  926. 

MINORS   AND    INCOMPETENT   PERSONS 

No  time  limitation  is  to  run  against  minor  dependent  or  mentally  in- 
competent person  until  appointment  of  guardian,  committee  or  next  friend 
(§116).  Herkey  v.  Agar  Mfg.  Co.,  153  N.  Y.  8.  369;  Woodcock  v.  Walker, 
155  N.  Y.  8.  702.  A  minor  employee  is  deemed  sui  juris  for  the  purpose  of 
making  election  under  the  Act  (§2).  The  Commission  may  require  the 
appointment  of  a  guardian  for  the  purpose  of  receiving  death  benefits  pay- 
able to  a  minor  dependent;  but  unless  the  Commission  so  requires,  the 
appointment  of  a  guardian  is  not  necessary.     (§16  [2]). 

WHERE  INJURY  IS  CAUSED   BY  THIRD  PARTY 

An  employee  injured  by  the  negligence  of  a  third  party  not  in  the  same 
employ  has  the  option  either  to  take  compensation  or  sue  third  party  for 
damages.  If  first  alternative  be  elected,  he  must  assign  his  claim  for 
damages  to  party  liable  for  compensation.  If  second  alternative  be  elected, 
the  party  liable  for  compensation  need  pay  only  the  deficiency,  if  any,  be- 
tween amount  recovered  and  total  compensation  (§29).  Lester  v.  Otis 
Elevator  Co.,  153  N.  Y.  8.  1058,  169  A.  D.  613,  155  N.  Y.  8.  524;  Miller  v. 
N.  Y.  Rys.  Co.,  157  N.  Y.  8.  200;  Woodxvard  v.  Conklin  ^  Son,  id.  948;  Dale 
V.  Saunders  Bros.,  id.  1062. 

PRINCIPAL  AND  SUB-CONTRACTOR 

No  provision  as  to  liability  of  employer  to  employees  of  contractors  or 
sub-contractors;  but  see  In  re  Rheinwald,  153  N.  Y.  8.  598;  Powley  v.  Vivian 
^  Co.,  164  N.  Y.  8.  426. 

SUITS   FOR   DAMAGES 

Employer's  liability  for  compensation  excludes  any  other  liability  what- 
soever to  the  employee,  his  [or  her]  personal  representatives,  husband, 
parents,  next  of  kin,  etc.;  except  that  if  employer  has  not  secured  com- 
pensation as  required  by  Art.  3,  injured  employee  has  option  either  to  re- 
cover compensation  or  to  sue  for  full  damages,  and  in  such  suit  for  damages, 
employer's  common  law  defenses  are  abrogated  (§§11,  52).  Shinnick  v.  Clover 
Farms  Co.,  152  N.   Y.  8.  649;  Herkey  v.  Agar  Mfg.  Co.,  153  N.   Y.  8.  369; 


—  19  — 

Dearborn  v.  Peugeot  Auto  Imimrt  Co.,  155  N.  Y.  S.  769;  Dick  v.  Knoper- 
baum;  157  N.  Y.  S.  754. 

ACCIDENT   PREVENTION 

Employers  may  form  association  for  accident  prevention  and  adopt  rules 
for  that  purpose,  to  become  binding  on  aU  employers  of  the  same  class, 
subject   to   approval  of  Commission    (§96). 

REPORTS   REQUIRED   OF   EMPLOYER   OR   INSURER 

Joint  report  of  agreement  for  payment  of  compensation  must  be  made 
to  Commission  on  form  provided  (§20).  Report  must  be  made  to  Com- 
mission of  all  accidents  resulting  in  personal  injury,  within  ten  days  after 
occurrence.  Penalty  for  non-compliance,  $500  fine  (§111).  Any  information 
requested  by  Commission,  must  be  given,  and  employer's  books,  records, 
etc.,  are  subject  to  inspection  (§§112-113). 

POSTING  NOTICES 

Employers  to  whom  the  elective  features  of  the  Act  are  applicable  are 
required  to  signify  their  election  to  come  under  the  Act  by  posting  notices 
thereof  at  their  place  of  business  (§2).  Employer  must  post  at  his  place 
or  places  of  business,  printed  or  typewritten  notice,  in  form  prescribed  by 
Commission,  of  compliance  with  provision  for  securing  compensation   (§51). 

CONTRACTING  OUT 

Agreements  to  waive  the  right  to  compensation  are  void  (§32).  Agree- 
ments for  contribution  by  employees  are  void  (§31).  Powley  v.  Vivian  ^  Co., 
154  N.  Y.  S.  426. 

INSURANCE 

General  Provisions 

If  employer  carries  insurance,  he  must  file  with  Commission  notice 
thereof,  in  prescribed  form,  together  with  such  information  regarding  his 
policy  as  the  Commission  may  require  (§50).  Every  policy  of  insurance 
must  provide  that  Commission  may  enforce  it,  that  notice  to  employer  shall 
be  deemed  notice  to  insurer,  etc.,  and  that  insolvency  of  employer  shall  not 
discharge  insurer,  etc.;  and  must  cover  liability  for  compensation.  Policies 
may  be  cancelled  only  upon  notice  to  Commission,  etc.  (§54).  Policies  may 
be  issued  to  cover  employers  who  perform  labor  incidental  to  their  occu})a- 
tions  (§54  [6]).  All  insurance  carriers  are  subject  to  assessment  to  cover 
expenses  of  administering  Act,   beginning   with  the  year   1917    (§77). 

Stock  Companies 

Employer  may  insure  compensation  in  any  stock  corporation  authorized 
to  transact  such  business  within  the  State  (§50). 

Mutual  Insurance 

Thirteen  or  more  persons  may  incorporate  for  purpose  of  insuring  com- 
pensation on  the  mutual  plan,  but  may  not  begin  business  until  annual 
premiums  on  insurance  applied  for  amount  to  $25,000  and  membership  is 
at  least  40  employers  with  2,500  employees,  or  30  employers  with  5,000 
employees,    or    20    employers    with    7,500    employees,    or    10    employers    with 


—  20  — 

10,000  employees.  Reserves  must  be  maintained  equal  to  that  required  of 
stock  cor})orations  in  same  class  of  insurance.  Foreign  mutual  corporations 
may  be  admitted  after  Jan.  1,  1917.  Such  corporations  are  required  to  main- 
tain a  surplus  of  not  less  than  $100,000  (Ch.  832,  Laws  1913,  as  amended  by 
Ch.  50(),  Laws  1915  and  Ch.  393,  Laws  of  1916). 

State  Insurance 

A  State  Insurance  Fund,  to  be  managed  by  the  Commission,  is  created, 
subject  to  special  ])rovisions  as  to  reports,  reserves,  assessments,  etc.  An 
employer  insuring  therein  may  withdraw,  but  remains  liable  for  assessments 
for  one  year  thereafter  and  is  entitled  to  any  dividend  having  accrued  during 
his  membership  (Art.  5).  Employers  insuring  therein  are  relieved  from  lia- 
bility to  employees  (§53).    Crockett  v.  State  Insurance  Fund,  155  N.  Y.  8,  692. 

Regulation  of  Rates 

Every  corporation  or  association  insuring  compensation  must  file  with 
Superintendent  of  Insurance  its  classification  of  risks  and  premiums,  which 
are  subject  to  his  approval  (Ch.  16,  Laws  of  1914).  For  State  Insurance, 
risks  are  to  be  classified  and  premiums  fixed  by  Commission   (§§95,  97). 

PENALTIES 

Failure  to  report  accidents  is  a  misdemeanor,  punishable  by  fine  of  $500 
(§111).  Penalty  of  50%  is  added  to  claim  for  compensation  in  case  of 
non-payment  within  10  days  after  demand.  Employer  is  liable  to  penalty 
of  10%  of  defaulted  payment,  regardless  of  subsequent  pajinent  by  insurer 
(§26).  Employer  who  deducts  from  wages  any  portion  of  insurance  cost 
is  guilty  of  a  misdemeanor  (§31).  False  statement  in  claim  for  compensa- 
tion is  a  misdemeanor  (§115).  If  employer  insuring  in  State  Fund  wilfully 
misrepresents  amount  of  pay  roll,  he  is  liable  to  State  in  10  times  the  differ- 
ence between  premium  paid  and  amount  which  should  have  been  paid  (§102). 
Failure  to  secure  payment  of  compensation  as  required  is  a  misdemeanor  (§52). 

EXTRA-TERRITORIAL  EFFECT 

No  provision;  but  the  courts  have  generally  given  extra-territorial  effect 
to  the  Act,  especially  where  the  employee  has  been  a  resident  of  the  State, 
or  where  the  contract  of  employment  was  made  in  the  State.  Edwardsen  v. 
Jarvis  Lighterage  Co.,  153  N.  Y.  8.  391;  8pratt  v.  8weeney  ^  Gray  Co.,  id. 
505;  affd.  216  N.  Y.  763;  Valentine  v.  8mith,  168  A.  D.  403,  affd.  216  N.  Y. 
763;  Post  V.  Burger,  168  A.  D.  403,  afd.  216  N.  Y.  544,  111  N.  E.  351.  But 
see,  contra.  Gardener  v.  Horseheads  Constr.  Co.,  156  N.  Y.  8.  899. 

CONSTITUTIONALITY 

If  any  provision  of  Act  is  held  unconstitutional,  it  shall  not  affect  validity 
of  the  remainder  (§118).  Amendment  to  State  Constitution  embodied  in  §19, 
Art.  I,  ratified  by  popular  vote  Nov.  4,  1913,  provides  there  shall  be  no 
constitutional  limit  on  power  of  Legislature  to  enact  compensation  or  safety 
laws. 

The  Constitutionality  of  the  Act  was  upheld  by  the  New  York  Court  of 
Appeals  in  Jensen  v.  Southern  Pacific  Co.,  215  N.  Y.  514;  Walker  v.  Clyde 
8.  8.  Co.,  id.  629. 


—  21  — 

MISCELLANEOUS  PROVISIONS 

Various  presumptions  established  in  favor  of  employee  in  daim  for  com- 
pensation (§21).  Winfield  v.  N.  Y.  C.  ^  H.  R.  R.  Co.,  153  N.  Y.  8.  499; 
McQueeney  v.  Sutphen  ^  Hyer,  id.  554;  Kohler  v.  Frohmann,  id.  559;  In  re 
Rheinwald,  id.  598;  Larsen  v.  Paine  Drug  Co.,  155  N.  Y.  S.  759;  Collins  v. 
Bklyn.   Union  Gas  Co.,  156  N.  Y.  8.  95T. 

Benefits  accruing  to  employee  from  other  sources  are  not  to  affect  claim 
for  compensation,  except  in  case  of  gratuitous  pension  to  public  employee  (§30). 

If  proceedings  before  Commission  or  Court  are  not  brought  on  reasonable 
ground,  the  entire  cost  thereof  is  to  be  assessed  on  party  bringing  same  (§24). 


TEXT  OF  THE  LAW 


CHAPTER   816,   LAWS    OF    1913 

As   re-enacted  by  Chapter  41,  Laws  of  1914,  and  amended  by  Chapter  316, 
Laws    of    1914,    constituting    Chapter    67    of    the    Consolidated    Laws, , 
further    amended    by    Chapters    167,    168,    615    and    674,    Laws    of    1915; 
and  by   Chapter  622,  Laws  of  1916. 

AN  ACT 

In   relation  to   assuring   compensation   for   injuries   or   death   of   certain   em- 
ployees in  the  course  of  their  employment  and  repealing  certain  sections 
of   the    labor    law    relating    thereto,    constituting    chapter    sixty-seven    of 
the  consolidated  laws. 
The    People    of    the    State    of    New    York;    represented    in   Senate    and 

Assembly,  do  enact   as  folloxvs: 

CHAPTER  67  OF   THE  CONSOLIDATED  LAWS 

Workmen's  Compensation  Law 

Article  1.  Short    title,    application,    definitions.      (Sees.    1-3). 

2.  Compensation.      (Sees.    10-34). 

3.  Security   for   compensation.      (Sees.   50-54). 

4.  State  workmen's  compensation  commission.      (Sees.  60-77). 

5.  State  insurance  fund.      (Sees.  90-106). 

6.  Miscellaneous    })rovisions.      (Sees.    110-119). 

7.  Laws  repealed;  when  to  take  eflFect.     (Sees.  130-131). 

ARTICLE   1 
Short   Title;    Application;    Definitions 

Section  1.     Short  title. 

2.  Application. 

3.  Definitions. 

Section  1.  Short  title.  This  chapter  shall  be  known  as  the  "workmen's 
compensation  law." 

Sec.  2.  *[As  amended  by  Chapter  622,  Laws  of  1916.]  Application. 
Compensation  provided  for  in  this  chapter  shall  be  payable  for  injuries 
sustained  or  death  incurred  by  employees  engaged  in  the  following  hazardous 
emi)loyments : 

Group  1.  The  operation,  including  construction  and  repair,  of  railways 
operated  by  steam,  electric  or  other  motive  power,  street  railways,  and 
incline  railways,  but  not  their  construction  when  constructed  by  any  person 
other  than  the  company  which  owns  or  operates  the  railway,  including  work 
of  express,   sleeping,  parlor  and  dining  car  employees  on  railway  trains. 

Group  2.  Construction,  repair  and  operation  of  railways  not  included 
in  group  one. 

Group  3.  The  operation,  including  construction  and  repair,  of  car  shojis, 
machine  shops,  steam  and  power  plants,  and  other  works  for  the  purposes 
of  any  such  railway,  or  used  or  to  be  used  in  connection  with  it  when  operated, 
constructed  or  repaired  by  the  company  which  owns  or  operates  the  railway. 


*The   hazardous   industries   added   to   the  various    groups   in   this  section    by 
Chapter  622,   Laws  of  1916,  are  printed   in   italics. 


—  23  — 

Group  4.  The  operation,  including  construction  and  repair,  of  car  shops, 
machine   shops,   steam   and   power   plants,   not   included   in   group   three. 

Group  5.  The  operation,  including  construction  and  repair,  of  telephone 
lines  and  wires  for  the  purposes  of  the  business  of  a  telephone  company,  or 
used  or  to  be  used  in  connection  with  its  business,  when  constructed  or 
operated  by  the  company. 

Group  6.  The  operation,  including  construction  and  repair,  of  telegraph 
lines  and  wires  for  the  purposes  of  the  business  of  a  telegraph  company,  or 
used  or  to  be  used  in  connection  with  its  business,  when  constructed  or 
operated  by  the  company. 

Group  7.  Construction  or  repair  of  telegraph  and  telephone  lines  not 
included  in  groups  five  and   six. 

Group  8.  The  operation,  within  or  without  the  state,  including  repair, 
of  vessels  other  than  vessels  of  other  states  or  countries  used  in  interstate 
or  foreign  commerce,  when  operated  or  repaired  by  the  company;  marine 
wrecking. 

Group  9.  Shipbuilding,  including  construction  and  repair  in  a  shipyard 
or  elsewhere,  not  included  in  group  eight. 

Group  10.  Longshore  work,  including  the  loading  or  unloading  of  car- 
goes or  parts  of  cargoes  of  grain,  coal,  ore,  freight,  general  merchandise, 
lumber  or  other  products  or  materials,  or  moving  or  handling  the  same  on 
any  dock,  platform  or  place,  or  in  any  warehouse  or  other  place  of  storage. 

Group  11.  Dredging,  subaqueous  or  caisson  construction  or  repair,  and 
pile  driving. 

Group  12.  Construction,  installation,  repair  or  operation  of  electric  light 
and  electric  power  lines,  dynamos,  or  appliances,  and  power  transmission  lines. 

Group  13.  Paving;  road-building,  curb  and  sidewalk  construction  or 
repair;  sewer  and  subway  construction  or  repair,  work  under  compressed  air, 
excavation,  tunneling  and  shaft  sinking,  well  digging,  laying  and  repair  of 
underground  pipes,  cables  and  wires,  not  included  in  other  groups;  street 
cleaning,  ashes,  garbage  or  snow  removal;  operation  of  water  works. 

Group  14.  Lumbering;  logging,  river-driving,  rafting,  booming,  saw 
mills,  bark  mills;  shingle  mills,  lath  mills,  lumber  yards;  manufacture  of 
veneer  and  of  excelsior;  manufacture  of  barrels,  kegs,  vats,  tubs,  staves, 
spokes,  or  headings. 

Group  15.     Pulp   and  paper  mills. 

Group  16.  Manufacture  of  furniture,  interior  woodwork,  organs,  pianos, 
piano  actions,  canoes,  small  boats,  coffins,  wicker  and  rattan  ware;  upholster- 
ing; manufacture  of  mattresses  or  bed  springs. 

Group  17.  Planing  mills,  sash  and  door  factories,  manufacture  of  wooden 
and  corrugated  paper  boxes,  cheese  boxes,  mouldings,  window  and  door 
screens,  window  shades,  carpet  sweepers,  wooden  toys,  wooden  articles  and 
wares  or  baskets;  cork  cutting. 

Group  18,  Mining;  reduction  of  ores  and  smelting;  preparation  of  metals 
or  minerals;  oil  and  gas  wells. 

Group  19.  Quarries;  sand,  shale,  clay  or  gravel  pits,  lime  kilns;  manu- 
facture of  brick,  tile,  terra-cotta,  asbestos,  fireproofing,  or  paving  blocks, 
manufacture  of  calcium  carbide,  cement,  asphalt  or  paving  material;  stone 
crushing  or  grinding. 

Group  20.  Manufacture  of  glass,  glass  products,  glassware,  porcelain 
or  pottery. 

Group  21.  Iron,  steel  or  metal  foundries;  rolling  mills;  manufacture 
of   castings,   forgings,  heavy   engines,  locomotives,   machinery,  safes,   anchors. 


—  24  — 

cables,    rails,    shafting,    wires,    tubing,    pipes,    sheet    metal,    boilers,    furnaces, 
stoves,  structural  steel,  iron  or  metal;  machine  shops,  including  repairs. 

Group  22.  Operation  and  repair  of  stationary  engines  and  boilers, 
freight  and  passenger  elevators,  not  included  in  other  groups;  window  clean- 
ing; heating  and  lighting. 

Group  23.  Manufacture  of  small  castings  or  forgings,  metal  wares, 
instruments,  utensils  and  articles,  hardware,  nails,  wire  goods,  screws,  bolts, 
metal  beds,  sanitary,  water,  gas  or  electric  fixtures,  light  machines,  type- 
writers, cash  registers,  adding  machines,  carriage  mountings,  bicycles,  metal 
toys,  tools,  cutlery,  instruments,  photographic  cameras  and  supplies,  sheet 
metal  products,  buttons;  jewelry;  gold,  silver  and  plated  ware;  articles  of 
hone,  ivory  and  shell. 

Group  24.  Manufacture  of  agricultural  implements,  threshing  machines, 
traction  engines,  wagons,  carriages,  sleighs,  vehicles,  automobiles,  motor  trucks, 
toy  wagons,  sleighs  or  baby  carriages;  blacksmiths;  horse-shoers. 

Group  25.  Manufacture  of  explosives  and  dangerous  chemicals,  corrosive 
acids  or  salts,  ammonia,  gasoline,  petroleum,  petroleum  products,  celluloid,  gas, 
charcoal,  artificial  ice,  gun  powder  or  ammunition;  ice  harvesting,  ice  storage 
and  ice  distribution. 

Group  26.  Manufacture  of  paint,  color,  varnish,  oil,  japans,  turpentine, 
printing  and  other  ink,  printers'  rollers,  tar,  tarred,  pitched  or  asphalted  paper. 

Group  27.  Distilleries,  breweries;  manufacture  of  spirituous  or  malt 
liquors,  alcohol,  wine,  mineral  water  or  soda  waters;  bottling. 

Group  28.  Manufacture  of  drugs  and  chemicals,  not  specified  in  group 
twenty-five,  medicines,  dyes,  extracts,  pharmaceutical  or  toilet  preparations, 
soaps,  candles,  perfumes,  non-corrosive  acids  or  chemical  preparations,  fer- 
tilizers, including  garbage  or  sewerage  disposal  plants;  shoe  blacking  or  polish. 

Group  29.  Milling;  manufacture  of  cereals  or  cattle  foods,  warehousing; 
storage  of  all  kinds  and  storage  for  hire;  operation  of  grain  elevators. 

Group  30.  Packing  houses,  meat  markets,  abattoirs,  manufacture  or  prep- 
aration of  meats  or  meat  products  or  glue,  gelatine,  paste  or  wax. 

Group  31.     Tanneries. 

Group  32.  Furriers;  manufacture  of  leather  goods  and  products,  belting, 
saddlery,  harness,  trunks,  valises,  boots,  shoes,  gloves,  umbrellas,  rubber  goods, 
rubber  shoes,  tubing,  tires  or  hose. 

Group  33.  Canning  or  preparation  of  fruit,  vegetables,  fish  or  food  stuffs; 
pickle  factories  and  sugar  refineries;  manufacture  of  dairy  products. 

Group  34.  Bakeries,  including  manufacture  of  crackers  and  biscuits, 
manufacture  of  confectionery,  spices  or  condiments. 

Group  35.     Manufacture  of  tobacco,  cigars,  cigarettes  or  tobacco  products. 

Group  36.  Manufacture  of  cordage,  ropes,  fibre,  brooms  or  brushes; 
manilla  or  hemp  products. 

Group  37.  Flax  mills;  manufacture  of  textiles  or  fabrics,  spinning,  weav- 
ing and  knitting  manufactories;  manufacture  of  yarn,  thread,  hosiery,  cloth, 
blankets,  carpets,  canvas,  bags,  shoddy  or  felt. 

Group  38.  Manufacture  of  men's  or  women's  clothing,  white  wear,  shirts, 
collars,  corsets,  hats,  caps,  furs  or  robes,  or  other  articles  from  textiles  or 
fabrics. 

Group  39.     Power  laundries;  dyeing,  cleaning  or  bleaching. 

Group  40.  Printing,  engraving,  photo-engraving,  stereotyping,  electro- 
typing,  lithographing,  embossing;  manufacture  of  moving  picture  machines  and 
films;  manufacture  of  stationery,  paper,  cardboard  boxes,  bags,  or  wall-paper; 
and  book-binding. 


—  25-r 

Group  41.  The  operation,  otherwise  than  on  tracks,  on  streets,  highways, 
or  elsewhere  of  cars,  trucks,  wagons  or  other  vehicles,  and  rollers  and  engines, 
propelled  by  steam,  gas,  gasoline,  electric,  mechanical  or  other  power  or  drawn 
by  horses  or  mules,  imblic  garages,  livery,  hoarding  or  sales  stables;  movers 
of  all  kinds. 

Group  42.  Stone  cutting  or  dressing ;  marble  works ;  manufacture  of  arti- 
ficial stone;  steel  building  and  bridge  construction  or  repair;  installation  or 
repair  of  elevators,  fire  escapes,  boilers,  engines  or  heavy  machinery;  brick- 
laying, tile-laying,  mason  work,  stone-setting,  concrete  work,  plastering;  and 
manufacture  of  concrete  blocks;  structural  carpentry;  painting,  papering, 
picture  hanging,  glazing,  decorating  or  renovating;  sheet  metal  work;  roofing; 
construction,  repair  and  demolition  of  buildings,  bridges  and  other  structures; 
salvage  of  buildings  or  contents;  plumbing,  sanitary  lighting  or  heating  in- 
stallation or  repair;  installation  and  covering  of  pipes  or  boilers;  junk  dealers. 
Group  43.  *Any  employment  enumerated  in  the  foregoing  groups  and 
carried  on  by  the  state  or  a  municipal  corporation  or  other  subdivision  thereof, 
notwithstanding  the  definition  of  the  term  "employment"  in  subdivision  five  of 
section  three  of  this  chapter. 

*Any  employer  not  carrying  on  one  of  the  employments   enumerated  in 
this  section,  or  who  carrying  on  one  of  such  employments  has  in  his  employ 
an  employee  not  included  within  the  term  "employee"  as  defined  by  section 
three  of  this  chapter,  and  the  employees  of  any  such  employer  may,  by  their 
joint  election,  elect  to  become  subject  to  the  provisions   of  this  chapter  in 
the  manner  hereinafter  provided.     Such  election  on  the  part  of  the  employer 
shall  be  made  by  posting  notices  thereof  about  the  place  where  the  workmen 
are  employed,  in  a  manner  to  be  prescribed  by  rules  to  be  adopted  by  the 
commission,  and  by  filing  with  the  commission  a  written  statement,  in  a  form 
to  be  prescribed  by  the  commission,  to  the  effect  that  he  accepts  the  provisions 
of  this  chapter  and  that  he  adopts  subject  to  the  approval  of  the  commission 
one  of  the  methods  of  securing  compensation  to  his  employees  prescribed  in 
section  fifty  of  this  chapter  which,  when  so  filed  with  and  approved  by  the 
commissipn  as   to   form   and  method   of  securing  compensation   shall  operate 
to  subject  him  to  the  provisions  of  this  chapter  and  of  all  acts  amendatory 
thereof  for  the  period  of  one  year  from  the  date  of  such  approval,  and  there- 
after without  further  act  on  his  part  for  successive  terms  of  one  year  each, 
unless  such  employer  shall,  at  least  sixty  days  prior  to  the  expiration  of  such 
first  or  any  succeeding  year,  file  with  the  commission  a  notice  in  writing  that 
he  withdraws  his  election. 

*Any  employee  in  the  service  of  any  such  employer  shall  be  deemed  to 
have  accepted,  and  shall  be  subject  to  the  provisions  of  this  chapter  and  any 
act  amendatory  thereof,  if,  at  the  time  of  the  accident  for  which  liability  is 
claimed,  the  employer  charged  with  such  liability  has  not  withdrawn  his 
election  and  the  employee  shall  not  at  the  time  of  entering  into  his  contract 
of  hire  have  given  to  his  employer  notice  in  writing  that  he  elects  not  to  be 
subject  to  the  provisions  of  this  chapter  and  filed  a  copy  thereof  with  the 
commission,  or  in  the  event  that  such  contract  for  hire  was  made  in  advance 
of  the  election  of  the  employer,  such  employee  shall  not  have  given  to  his 
employer  and  filed  with  the  commission  within  twenty  days  after  such  election 
notice  in  writing  that  he  elects  not  to  be  subject  to  such  provisions. 

*A  minor  employee  shall  be  deemed  sui  juris  for  the  purpose  of  making 
such  an  election. 

*The  rights  and  remedies,  benefits  and  liabilities  of  an  employer  or  em- 

*This  paragraph  added  to  the  law  by  Chapter  622,   Laws  of  1916. 


—  26  — 

ployee  so  electing  to  become  subject  to  the  provisions  of  this  chapter  shall 
thereupon  become  the  same  as  they  would  have  been  had  they  been  engaged 
in  one  of  the  occupations  or  employments  enumerated  herein  and  the  words 
employer  or  employee  wherever  they  appear  in  this  chapter  shall  be  construed 
as  including  an  employer  or  employee  who  has  so  elected  to  become  subject 
to  its  provisions. 

Sec.  3.  [As  amended  by  Chapter  622,  Laws  of  1916.]  Definitions.  As 
used  in  this  chapter,  1.  "Hazardous  employment"  means  a  work  or  occupation 
described  in  section  two  of  this  chapter. 

2.  "Commission"  means  the  state  industrial  commission,  as  constituted  by 
this  chapter. 

3.  "Employer,"  except  when  otherwise  expressly  stated,  means  a  person, 
partnership,  association,  corporation,  and  the  legal  representatives  of  a  de- 
ceased employer,  or  the  receiver  or  trustee  of  a  person,  partnership,  association 
or  corporation,  employing  workmen  in  hazardous  employments  including  the 
state  and  a  municipal  corporation  or  other  political  subdivision  thereof. 

4.  "Employee'  means  a  person  engaged  in  one  of  the  operations  enume- 
rated in  section  two  or  who  is  in  the  service  of  an  employer  whose  principal 
business  is  that  of  carrying  on  or  conducting  a  hazardous  employment  upon 
the  premises  or  at  the  plant,  or  in  the  course  of  his  employment  away  from 
the  plant  of  his  employer;  and  shall  not  include  farm  laborers  or  domestic 
servants. 

5.  "Employment"  includes  employment  only  in  a  trade,  business  or 
occupation  carried  on  by  the  employer  for  pecuniary  gain,  except  where  the 
employer  and  his  employees  have  by  their  joint  election  elected  to  become 
subject  to  the  provisions  of  this  chapter  as  provided  in  section  two. 

6.  "Compensation"  means  the  money  allowance  payable  to  an  employee 
or  to  his  dependents  as  provided  for  in  this  chapter,  and  includes  funeral 
benefits  provided  therein. 

7.  "Injury"  and  "personal  injury"  mean  only  accidental  injuries  arising 
out  of  and  in  the  course  of  employment  and  such  disease  or  infection  as  may 
naturally  and  unavoidably  result  therefrom. 

8.  "Death"  when  mentioned  as  a  basis  for  the  right  to  compensation 
means  only  death  resulting  from  such  injury. 

9.  "Wages"  means  the  money  rate  at  which  the  service  rendered  is 
recompensed  under  the  contract  of  hiring  in  force  at  the  time  of  the  accident, 
including  the  reasonable  value  of  board,  rent,  housing,  lodging  or  similar 
advantage  received  from  the  employer. 

10.  "State  fund"  means  the  state  insurance  fund  provided  for  in  article 
five  of  this  chapter. 

11.  "Child"  shall  include  a  posthumous  child  and  a  child  legally  adopted 
prior  to  the  injury  of  the  employee;  and  a  step-child  dependent  upon  the 
deceased. 

12.  "Insurance  carrier"  shall  include  the  state  fund,  stock  corporations 
or  mutual  associations  with  which  employers  have  insured,  and  employers 
permitted  to  pay  compensation  directly  under  the  provisions  of  subdivision 
three  of  section  fifty. 

13.  "Manufacture,"  "construction,"  "operation"  and  "installation"  shall 
include  "repair,"  "demolition"  and  "alteration." 


—  27  — 

ARTICLE  2 
Compensation 

Section  10.  Liability  for  compensation. 

11.  Alternative  remedy. 

12.  Compensation  not  allowed  for  first  two  weeks. 

13.  Treatment  and  care  of  injured  employees. 

14.  Weekly  wages  basis  of  compensation. 

15.  Schedule  in  case  of  disability. 

16.  Death  benefits. 

17.  Aliens. 

18.  Notice  of  injury. 

19.  Medical  examination. 

20.  Determination  of  claims  for  compensation. 

21.  Presumptions. 

22.  Modification  of  award. 

23.  Appeals  from  the  commission. 

24.  Costs  and  fees. 

25.  Compensation,  how  payable. 

26.  Enforcement  of  payment  in  default. 

27.  Depositing  future  payments. 

28.  Limitation  of  right  to  compensation. 

29.  Subrogation  to  remedies  of  employee. 

30.  Revenues  or  benefits  from  other  sources  not  to  affect  compensation. 

31.  Agreement  for  contribution  by  employee  void. 

32.  Waiver  agreements  void. 

33.  Assignments;  exemptions. 

34.  Preferences. 

Sec.  10.  Liability  for  compensation.  Every  employer  subject  to  the 
provisions  of  this  chapter  shall  paj^  or  provide  as  required  by  this  chapter 
compensation  according  to  the  schedules  of  this  article  for  the  disability  or 
death  of  his  employee  resulting  from  an  accidental  personal  injury  sustained 
by  the  employee  arising  out  of  and  in  the  course  of  his  employment,  without 
regard  to  fault  as  a  cause  of  such  injury,  except  where  the  injury  is  occasioned 
by  the  willful  intention  of  the  injured  employee  to  bring  about  the  injury  or 
death  of  himself  or  of  another,  or  where  the  injury  results  solely  from  the 
intoxication  of  the  injured  employee  while  on  duty.  Where  the  injury  is 
occasioned  by  the  willful  intention  of  the  injured  employee  to  bring  about 
the  injury  or  death  of  himself  or  of  another,  or  where  the  injury  results  solely 
from  the  intoxication  of  the  injured  employee  while  on  duty,  neither  the 
injured  employee  nor  any  dependent  of  such  employee  shall  receive  compen- 
sation under  this  chapter. 

Sec.  11.  [As  amended  by  Chapter  622,  Laws  of  1916.]  Alternative 
remedy.  The  liability  of  an  employer  prescribed  by  the  last  preceding  section 
shall  be  exclusive  and  in  place  of  any  other  liability  whatsoever,  to  such  em- 
ployee, his  personal  representatives,  husband,  parents,  dependents  or  next  of 
kin,  or  anyone  otherwise  entitled  to  recover  damages,  at  common  law  or  other- 
wise on  account  of  such  injury  or  death,  except  that  if  an  employer  fail  to 
secure  the  payment  of  compensation  for  his  injured  employees  and  their 
dependents  as  provided  in  section  fifty  of  this  chapter,  an  injured  employee, 
or  his  legal  representative  in  case  death  results  from  the  injury,  may,  at  his 
option,  elect  to  claim  compensation  under  this  chapter,  or  to  maintain  an 
action  in  the  courts  for  damages  on  account  of  such  injury;  and  in  such  an 
action  it  shall  not  be  necessary  to  plead  or  prove  freedom  from  contributory 


—  28  — 

negligence  nor  may  the  defendant  plead  as  a  defense  that  the  injury  was 
caused  by  the  negligence  of  a  fellow  servant  nor  that  the  employee  assumed 
the  risk  of  his  employment,  nor  that  the  injury  was  due  to  the  contributory 
negligence  of  the  employee. 

Sec.  12.  Compensation  not  allowed  for  first  two  weeks.  No  compensation 
shall  be  allowed  for  the  first  fourteen  days  of  disability,  except  the  benefits 
provided  for  in  section  thirteen  of  this  chapter. 

Sec.  13.  Treatment  and  care  of  injured  employees.  The  employer  shall 
promptly  provide  for  an  injured  employee  such  medical,  surgical  or  other 
attendance  or  treatment,  nurse  and  hospital  service,  medicines,  crutches  and 
apparatus  as  may  be  required  or  be  requested  by  the  employee,  during  sixty 
days  after  the  injury.  If  the  employer  fail  to  provide  the  same,  the  injured 
employee  may  do  so  at  the  expense  of  the  employer.  The  employee  shall  not 
be  entitled  to  recover  any  amount  expended  by  him  for  such  treatment  or 
services  unless  he  shall  have  requested  the  employer  to  furnish  the  same  and 
the  employer  shall  have  refused  or  neglected  to  do  so.  All  fees  and  other 
charges  for  such  treatment  and  services  shall  be  subject  to  regulation  by  the 
commission  as  provided  in  section  twenty-four  of  this  chapter,  and  shall  be 
limited  to  such  charges  as  prevail  in  the  same  community  for  similar  treat- 
ment of  injured  persons  of  a  like  standard  of  living. 

Sec.  14.  Weekly  wages  basis  of  compensation.  Except  as  otherwise  pro- 
vided in  this  chapter,  the  average  weekly  wages  of  the  injured  employee  at 
the  time  of  the  injury  shall  be  taken  as  the  basis  upon  which  to  compute 
compensation  or  death  benefits,  and  shall  be  determined  as  follows: 

1.  If  the  injured  employee  shall  have  worked  in  the  employment  in 
which  he  was  working  at  the  time  of  the  accident,  whether  for  the  same 
employer  or  not,  during  substantially  the  whole  of  the  year  immediately  pre- 
ceding his  injury,  his  average  annual  earnings  shall  consist  of  three  hundred 
times  the  average  daily  wage  or  salary  which  he  shall  have  earned  in  such 
employment  during  the  days  when  so  employed; 

2.  If  the  injured  employee  shall  not  have  worked  in  such  employment 
during  substantially  the  whole  of  such  year,  his  average  annual  earnings  shall 
consist  of  three  hundred  times  the  average  daily  wage  or  salary  which  an 
employee  of  the  same  class  working  substantially  the  whole  of  such  immedi- 
ately preceding  year  in  the  same  or  in  a  similar  employment  in  the  same  or  a 
neighboring  place  shall  have  earned  in  such  employment  during  the  days  when 

so  employed; 

3.  If  either  of  the  foregoing  methods  of  arriving  at  the  annual  average 
earnings  of  an  injured  employee  cannot  reasonably  and  fairly  be  applied, 
such  annual  earnings  shall  be  such  sum  as,  having  regard  to  the  previous 
earnings  of  the  injured  employee  and  of  other  employees  of  the  same  or 
most  similar  class,  working  in  the  same  or  most  similar  employment  in  the 
same  or  neighboring  locality,  shall  reasonably  represent  the  annual  earning 
capacity  of  the  injured  employee  in  the  employment  in  which  he  was  working 
at  the  time  of  the  accident; 

4.  The  average  weekly  wages  of  an  employee  shall  be  one-fifty-second 
part  of  his  average  annual  earnings; 

5.  If  it  be  established  that  the  injured  employee  was  a  minor  when 
injured,  and  that  under  normal  conditions  his  wages  would  be  expected  to 
increase,  the  fact  may  be  considered  in  arriving  at  his  average  weekly  wages. 

Sec.  15.     [As  amended  by  Chapter  622,  Laws  of  1916.]     Schedule  in  case 
of  disability.    The  following  schedule  of  compensation  is  hereby  established. 
1.     Total  permanent   disability.     In  case  of  total  disability   adjudged  to 


—  29  — 

be  permanent  sixty-six  and  two-thirds  per  centum  of  the  average  weekly  wages 
shall  be  paid  to  the  employee  during  the  continuance  of  such  total  disability. 
Loss  of  both  hands,  or  both  arms,  or  both  feet,  or  both  legs,  or  both  eyes,  or 
of  any  two  thereof  shall,  in  the  absence  of  conclusive  proof  to  the  contrary, 
constitute  permanent  total  disability.  In  all  other  cases  permanent  total  dis- 
ability shall  be  determined  in  accordance  with  the  facts. 

2.  Temporary  total  disability.  In  case  of  temporary  total  disability, 
sixty-six  and  two-thirds  per  centum  of  the  average  weekly  wages  shall  be 
paid  to  the  employee  during  the  continuance  thereof,  but  not  in  excess  of 
three  thousand  five  hundred  dollars,  except  as  otherwise  provided  in  this 
chapter.  s 

3.  Permanent  partial  disability.  In  case  of  disability  partial  in  character 
but  permanent  in  quality  the  compensation  shall  be  sixty-six  and  two-thirds 
per  centum  of  the  average  weekly  wages  and  shall  be  paid  to  the  employee 
for  the  period  named  in  the  schedule  as  follows: 

Thumb.     For  the  loss  of  a  thumb,  sixty  weeks. 

First  finger.  For  the  loss  of  a  first  finger,  commonly  called  index  finger, 
forty-six  weeks. 

Second  finger.    For  the  loss  of  a  second  finger,  thirty  weeks. 

Third  finger.    For  the  loss  of  a  third  finger,  twenty-five  weeks. 

Four  finger.  For  the  loss  of  a  fourth  finger,  commonly  called  the  little 
finger,  fifteen  weeks. 

Phalange  of  thumb  or  finger.  The  loss  of  the  first  phalange  of  the  thumb 
or  finger  shall  be  considered  to  be  equal  to  the  loss  of  one-half  of  such  thumb 
or  finger,  and  compensation  shall  be  one-half  of  the  amount  above  specified. 
The  loss  of  more  than  one  phalange  shall  be  considered  as  the  loss  of  the 
entire  thumb  or  finger;  provided,  however,  that  in  no  case  shall  the  amount 
received  for  more  than  one  finger  exceed  the  amount  provided  in  this  schedule 
for  the  loss  of  a  hand. 

Great  toe.     For  the  loss  of  a  great  toe,  thirty-eight  weeks. 

Other  toes.  For  the  loss  of  one  of  the  toes  other  than  the  great  toe,  sixteen 
weeks. 

Phalange  of  toe.  The  loss  of  the  first  phalange  of  any  toe  shall  be 
considered  to  be  equal  to  the  loss  of  one-half  of  said  toe,  and  the  compensation 
shall  be  one-half  of  the  amount  specified.  The  loss  of  more  than  one  phalange 
shall  be  considered  as  the  loss  of  the  entire  toe. 

Hand.    The  loss  of  a  hand,  two  hundred  and  forty-four  weeks. 

Arm.     For  the  loss  of  an  arm,  three  hundred  and  twelve  weeks. 

Foot.     For  the  loss  of  a  foot,  two  hundred  and  five  weeks. 

Leg.     For  the  loss  of  a  leg,  two  hundred  and  eighty-eight  weeks. 

Eye.     For  the  loss  of  an  eye,  one  hundred  and  twenty-eight  weeks. 

I>oss  of  use.  Permanent  loss  of  the  use  of  a  hand,  arm,  foot,  leg,  eye, 
thunib,  finger,  toe,  or  phalange,  shall  be  considered  as  the  equivalent  of  the 
loss  of  such  hand,  arm,  foot,  leg,  eye,  thumb,  finger,  toe  or  phalange. 

Amputations.  Amputation  between  the  elbow  and  the  w^rist  shall  be  con- 
sidered as  the  equivalent  of  the  loss  of  a  hand.  Amputation  between  the 
knee  and  the  ankle  shall  be  considered  as  the  equivalent  of  the  loss  of  a  foot. 
Amputation  at  or  above  the  elbow  shall  be  considered  as  the  loss  of  an  arm. 
Amputation  at  or  above  the  knee  shall  be  considered  as  the  loss  of  the  leg. 

The  compensation  for  the  foregoing  specific  injuries  shall  be  in  lieu  of  all 
other  compensation,  except  the  benefits  provided  in  section  thirteen  of  this 
chapter. 

In  case  of  an   injury  resulting  in   serious   facial  or  head   disfigurement 


—  30  — 

the  commission  may  in  its  discretion,  make  such  award  or  compensation  as 
it  may  deem  proper  and  equitable,  in  view  of  the  nature  of  the  disfigurement, 
but  not  to  exceed  three  thousand  five  hundred  dollars. 

Other  cases.  In  all  other  cases  in  this  class  of  disability,  the  compensa- 
tion shall  be  sixty-six  and  two-thirds  per  centum  of  the  difference  between 
his  average  weekly  wages  and  his  wage-earning  capacity  thereafter  in  the 
same  employment  or  otherwise,  payable  during  the  continuance  of  such  partial 
disability,  but  subject  to  reconsideration  of  the  degree  of  such  impairment 
by  the  commission  on  its  own  motion  or  upon  application  of  any  party  in 
interest. 

4.  Temporary  partial  disability.  In  case  of  temporary  partial  disability, 
except  the  particular  cases  mentioned  in  subdivision  three  of  this  section,  an 
injured  employee  shall  receive  sixty-six  and  two-thirds  per  centum  of  the 
difference  between  his  average  weekly  wages  and  his  wage  earning  capacity 
thereafter  in  the  same  employment  or  otherwise  during  the  continuance  of  such 
partial  disability,  but  not  to  exceed  when  combined  with  his  decreased  earn- 
ings the  amount  of  wages  he  was  receiving  prior  to  the  injury,  and  not  to 
exceed  in  total  the  sum  of  three  thousand  five  hundred  dollars,  except  as 
otherwise  provided  in  this  chapter. 

5.  Limitation.  The  compensation  payment  under  subdivisions  one,  two 
and  four  and  under  subdivision  three  except  in  case  of  the  loss  of  a  hand, 
arm,  foot,  leg,  or  eye,  shall  not  exceed  fifteen  dollars  per  week  nor  be  less 
than  five  doUars  per  week;  the  compensation  payment  under  subdivision  three 
in  case  of  the  loss  of  a  hand,  arm,  foot,  leg  or  eye,  shall  not  exceed  twenty 
dollars  per  week  nor  be  less  than  five  doUars  a  week;  provided,  however,  that 
if  the  employee's  wages  at  the  time  of  injury  are  less  than  five  dollars  per 
week  he  shall  receive  his  full  weekly  wages. 

6.  [As  amended  by  Chapter  615,  Laws  of  1915.]  Previous  disability. 
The  fact  that  an  employee  has  suffered  previous  disability  or  received  com- 
pensation therefor  shall  not  preclude  him  from  compensation  for  a  later 
injury  nor  preclude  compensation  for  death  resulting  therefrom;  but  in 
determining  compensation  for  the  later  injury  or  death  his  average  weekly 
wages  shall  be  such  sum  as  will  reasonably  represent  his  earning  capacity 
at  the  time  of  the  later  injury,  provided,  however,  that  an  employee  who 
is  suffering  from  a  previous  disability  shall  not  receive  compensation  for  a 
later  injury  in  excess  of  the  compensation  allowed  for  such  injury  when  con- 
sidered by  itself  and  not  in  conjunction  with  the  previous  disability. 

7.  Permanent  total  disability  after  permanent  partial  disabilit}^  If  an 
employee  who  has  previously  incurred  permanent  partial  disability  through 
the  loss  of  one  hand,  one  arm,  one  foot,  one  leg,  or  one  eye,  incurs  permanent 
total  disability  through  the  loss  of  another  member  or  organ,  he  shall  be  paid, 
in  addition  to  the  compensation  for  permanent  partial  disability  provided 
in  this  section  and  after  the  cessation  of  the  payments  for  the  prescribed 
period  of  weeks  special  additional  compensation  for  the  remainder  of  his 
life  to  the  amount  of  sixty-six  and  two-thirds  per  centum  of  the  average 
weekly  wage  earned  by  him  at  the  time  the  total  permanent  disability  was 
incurred.  Such  additional  compensation  shall  be  paid  out  of  a  special  fund 
created  for  such  purpose  in  the  following  manner:  The  insurance  carrier 
shall  pay  to  the  state  treasurer  for  every  case  of  injury  causing  death  in 
which  there  are  no  persons  entitled  to  compensation  the  sum  of  one  hundred 
dollars.  The  state  treasurer  shall  be  the  custodian  of  this  special  fund  and 
the  commission  shall  direct  the  distribution  thereof. 

Sec.  16.     [As  amended  by  Chapter  622,  Laws  of  1916.]     Death  benefits. 


-    31 — 

If  the  injury  causes  death,  the  compensation  shall  be  known  as  a  death 
benefit  and  shall  be  payable  in  the  amount  and  to  or  for  the  benefit  of  the 
persons  following: 

1.  Reasonable  funeral  expenses,  not  exceeding  one  hundred  dollars; 

2.  If  there  be  a  surviving  wife  (or  dependent  husband)  and  no  child 
of  the  deceased  under  the  age  of  eighteen  years,  to  such  wife  (or  dependent 
husband)  thirty  per  centum  of  the  average  wages  of  the  deceased  during 
widowhood  (or  dependent  widowerhood)  with  two  years'  compensation  in  one 
sum,  upon  remarriage;  and  if  there  be  surviving  child  or  children  of  the 
deceased  under  the  age  of  eighteen  years,  the  additional  amount  of  ten  per 
centum  of  such  wages  for  each  such  child  until  of  the  age  of  eighteen  years; 
in  case  of  the  subsequent  death  of  such  surviving  wife  (or  dependent  husband) 
any  surviving  child  of  the  deceased  employee,  at  the  time  under  eighteen 
years  of  age,  shall  have  his  compensation  increased  to  fifteen  per  centum  of 
such  wages,  and  the  same  shall  be  payable  until  he  shall  reach  the  age  of 
eighteen  years;  provided  that  the  total  amount  payable  shall  in  no  case  exceed 
sixty-six  and  two-thirds  per  centum  of  such  wages.  The  commission  may  in 
its  discretion  require  the  appointment  of  a  guardian  for  the  purpose  of  receiv- 
ing the  compensation  of  a  minor  child.  In  the  absence  of  such  a  requirement 
by  the  commission  the  appointment  of  a  guardian  for  such  purposes  shall 
not  be  necessary. 

3.  If  there  be  surviving  child  or  children  of  the  deceased  under  the  age 
of  eighteen  years,  but  no  surviving  wife  (or  dependent  husband)  then  for 
the  support  of  each  such  child  until  of  the  age  of  eighteen  years,  fifteen  per  centum 
of  the  wages  of  the  deceased,  provided  that  the  aggregate  shall  in  no  case 
exceed  sixty-six  and  two-thirds  per  centum  of  such  wages. 

4.  If  there  be  no  surviving  wife  (or  dependent  husband)  or  child  under 
the  age  of  eighteen  years  or  if  the  amount  payable  to  surviving  wife  (or 
dependent  husband)  and  to  children  under  the  age  of  eighteen  years  shall 
be  less  in  the  aggregate  than  sixty-six  and  two-thirds  per  centum  of  the 
average  wages  of  the  deceased,  then  for  the  support  of  grandchildren  or 
brothers  and  sisters  under  the  age  of  eighteen  years,  if  dependent  upon  the 
deceased  at  the  time  of  the  accident,  fifteen  per  centum  of  such  wages  for 
the  support  of  each  such  person  until  of  the  age  of  eighteen  years;  and  for 
the  support  of  each  parent,  or  grandparent,  of  the  deceased  if  dependent 
upon  him  at  the  time  of  the  accident,  twenty-five  per  centum  of  such 
wages  during  such  dependency.  But  in  no  case  shall  the  aggregate 
amount  payable  under  this  subdivision  exceed  the  difference  between  sixty- 
six  and  two-thirds  per  centum  of  such  wages,  and  the  amount  payable  as 
hereinbefore  provided  to  surviving  wife  (or  dependent  husband)  or  for  the 
support  of  surviving  child  or  children. 

Any  excess  of  wages  over  one  hundred  dollars  a  month  shall  not  be  taken 
into  account  in  computing  compensation  under  this  section.  All  questions  of 
dependency  shall  be  determined  as  of  the  time  of  the  accident. 

Sec.  17.  [As  amended  by  Chapter  622,  Laws  of  1916.]  Aliens.  Com- 
pensation under  this  chapter  to  aliens  not  residents  (or  about  to  become 
non-residents)  of  the  United  States  or  Canada,  shall  be  the  same  in  amount 
as  provided  for  residents,  except  that  dependents  in  any  foreign  country  shall 
be  limited  to  surviving  wife  and  child  or  children,  or,  if  there  be  no  surviving 
wife  or  child  or  children,  to  surviving  father  or  mother,  or  grandfather  or 
grandmother,  whom  the  employee  has  supported,  either  wholly  or  in  part, 
for  the  period  of  one  year  prior  to  the  date  of  the  accident,  and  except  that 
the  commission  may,  at  its  option,  or,  upon  the  application  of  the  insurance 


—  32  — 

carrier,  shall,  conmiutc  all  future  installments  of  compenstaion  to  be  paid 
to  such  aliens,  by  pajing  or  causing  to  be  paid  to  them  one-half  of  the  com- 
muted amount  of  such  future  installments  of  compensation  as  determined  by 
the  commission. 

Sec.  18.  Notice  of  injury.  Notice  of  an  injury  for  which  compensation 
is  payable  under  this  chapter  shall  be  given  to  the  commission  and  to  the 
employer  within  ten  days  after  disability,  and  also  in  case  of  the  death  of 
the  employee  resulting  from  such  injury,  within  thirty  days  after  such  death. 
Such  notice  may  be  given  by  any  person  claiming  to  be  entitled  to  com- 
pensation, or  by  some  one  in  his  behalf.  The  notice  shall  be  in  writing,  and 
contain  the  name  and  address  of  the  employee,  and  state  in  ordinary  language 
the  time,  place,  nature  and  cause  of  the  injury,  and  be  signed  by  him  or  by 
a  person  on  his  behalf  or,  in  case  of  death,  by  any  one  or  more  of  his  de- 
pendents, or  by  a  person  on  their  behalf.  It  shall  be  given  to  the  commission 
by  sending  it  by  mail,  by  registered  letter,  addressed  to  the  commission  at 
its  office.  It  shall  be  given  to  the  employer  by  delivering  it  to  him  or  sending 
it  by  mail,  by  registered  letter,  addressed  to  the  employer  at  his  or  its  last 
known  place  of  residence;  provided  that,  if  the  employer  be  a  partnership 
then  such  notice  may  be  so  given  to  any  one  of  the  partners,  and  if  the  em- 
ployer be  a  corporation,  then  such  notice  may  be  given  to  any  agent  or 
officer  thereof  upon  whom  legal  process  may  be  served,  or  any  agent  in  charge 
of  the  business  in  the  place  where  the  injury  occurred.  The  failure  to  give 
such  notice,  unless  excused  by  the  commission  either  on  the  ground  that 
notice  for  some  sufficient  reason  could  not  have  been  given,  or  on  the  ground 
that  the  state  fund,  insurance  com]iany,  or  employer,  as  the  case  may  be, 
has  not  been  prejudiced  thereby,  shall  be  a  bar  to  any  claim  under  this 
chapter. 

Sec.  19.  Medical  examination.  An  employee  injured  claiming  or  entitled 
to  compensation  under  this  chapter  shall,  if  requested  by  the  commission, 
submit  himself  for  medical  examination  at  a  time,  and  from  time  to  time, 
at  a  place  reasonably  convenient  for  the  employee,  and  as  may  be  provided 
by  the  rules  of  the  commission.  If  the  employee  or  the  insurance  carrier 
request  he  shall  be  entitled  to  have  a  physician  or  physicians  of  his  own 
selection  to  be  paid  by  him  present  to  participate  in  such  examination.  If 
an  employee  refuse  to  submit  himself  to  examination,  his  right  to  prosecute 
any  proceeding  under  this  chapter  shall  be  suspended,  and  no  compensation 
shall  be  payable,  for  the  period  of  such  refusal. 

Sec.  20.  [As  amended  by  Chapter  167,  Laws  of  1915.]  Determination 
of  claims  for  compensation.  At  any  time  after  the  expiration  of  the  first 
fourteen  days  of  disability  on  the  part  of  an  injured  employee,  or  at  any 
time  after  his  death,  a  claim  for  compensation  may  be  presented  to  the  em- 
ployer and  if  rejected  or  if  within  10  days  after  presentation,  a  report 
containing  an  agreement  for  compensation  be  not  made  and  filed  with  the 
commission  as  provided  by  this  section,  the  claim  may  be  presented  to  the 
commission.  The  commission  shall  have  full  power  and  authority  to  determine 
all  questions  in  relation  to  the  payment  of  claims  presented  to  it  for  com- 
pensation under  the  provisions  of  this  chapter.  The  commission  shall  make 
or  cause  to  be  made  such  investigations  as  it  deems  necessary,  and  upon 
application  of  either  party,  shall  order  a  hearing,  and  within  thirty  daj'^s 
after  a  claim  for  compensation  is  submitted  under  this  section,  or  such  hear- 
ing closed,  shall  make  or  deny  an  award,  determining  such  claim  for  com- 
pensation, and  file  the  same  in  the  office  of  the  commission,  together  with  a 
statement   of   its   conclusions   of   fact   and   rulings   of   law.     The   commission 


—  33  — 

may  before  making  an  award,  require  the  claimant  to  appear  before  an  arbi- 
tration committee  appointed  by  it  and  consisting  of  one  representative  of 
employees,  one  representative  of  employers,  and  either  a  member  of  the  com- 
mission or  a  person  specially  deputized  by  the  commission  to  act  as  chairman, 
before  which  the  evidence  in  regard  to  the  claim  shall  be  adduced  and  by 
which  it  shall  be  considered  and  reported  upon.  Immediately  after  such 
filing  the  commision  shall  send  to  the  parties  a  copy  of  the  decision.  Upon 
a  hearing  pursuant  to  this  section  either  party  may  present  evidence  and 
be  represented  by  counsel.  The  decision  of  the  commission  shall  be  final 
as  to  all  questions  of  fact,  and,  except  as  provided  in  section  twenty-three, 
as  to  all  questions  of  law.  When  a  claim  is  presented  to  an  employer,  and 
the  employer  and  employee,  or  in  case  of  death,  his  principal  dependent, 
enter  into  an  agreement  for  the  payment  of  compensation  therefor  pursuant 
to  this  chapter,  a  joint  report  of  such  claim  containing  such  agreement  shall 
be  made  to  the  commission  upon  a  form  prepared  by  it  and  signed  by  the 
employer  and  employee,  or  in  case  of  death  his  principal  dependent.  The 
commission  shall  examine  such  report  and  approve  the  same  when  the  terms 
are  strictly  in  accordance  with  this  chapter  and  such  approval  shall  constitute 
an  award.  However,  the  commission  may  make  an  award  in  the  manner 
provided  in  this  section  in  any  case,  and  if  the  terms  of  the  award  vary 
from  the  joint  report,  the  employer  shall  comply  with  the  award.  In  case 
of  unfair  dealing  or  of  bad  faith  on  the  part  of  the  employer  under  this 
section,  the  commission  may  impose  a  penalty  of  not  more  than  ten  per  centum 
of  the  award. 

[A  claim  for  compensation  presented  to  the  commission  prior  to  the  date 
when  this  act  takes  effect*  shall  be  determined  by  the  commission,  although 
such  claim  shall  not  have  been  theretofore  presented  to  the  employer  as 
provided  by  section  twenty,  as  amended  by  this  act. — Chapter  167,  Laws  of 
1915.     (Sec.  2.)] 

Sec.  20-a.  [Added  by  Chapter  168,  Laws  of  1915.]  Payment  of  moneys 
in  advance  of  award  by  commission.  Any  employer  shall  upon  making  of 
the  agreement  provided  for  in  section  twenty  advance  to  any  injured  employee 
or  to  the  principal  dependent  of  a  deceased  employee,  the  pajinent  or  pay- 
ments provided  for  in  the  agreement,  in  return  for  which  he  shall  receive 
a  receipt  on  a  form  supplied  by  the  commission  and  signed  by  the  person 
receiving  the  money,  which  receipt  shall  specifically  state  in  what  capacity 
the  signer  acted  while  so  receiving  such  money ;  such  receipt  shall  be  for- 
warded to  the  commission  within  forty-eight  hours  after  date  of  its  issuance 
and  the  sum  stated  on  its  face  shall  be  returned  to  said  employer  as  provided 
in  section  twenty-five. 

Prior  to  the  making  of  said  agreement  or  in  the  event  of  no  agreement, 
any  employer  may  at  his  option  advance  to  any  injured  employee  or  to  the 
]u*incipal  dependent  of  a  deceased  employee  any  sum  of  money,  in  return 
for  which  he  shall  receive  a  receipt  on  a  form  supplied  by  the  commission 
and  signed  by  the  person  receiving  the  money,  which  receipt  shall  specifically 
state  on  what  capacity  the  signer  acted  while  so  receiving  such  money;  such 
receipt  shall  be  forwarded  to  the  conmiission  within  forty-eight  hours  after 
date  of  its  issuance.  Should  any  agreement  or  award  be  made  the  sum  so 
stated  on  the  face  of  the  receipt  shall  be  credited  to  the  payment  under  the 
award  or  agreement  and  shall  be  repaid  as  hereinbefore  provided.  Any 
money  so  advanced  shall  be  at  the  employer's  risk. 


♦April  1,  1915. 


—  34  — 

Sec.  21.  Presumptions.  In  any  proceeding  for  the  enforcement  of  a 
claim  for  compensation  under  this  chapter,  it  shall  be  presumed  in  the  absence 
of  substantial  evidence  to  the  contrary. 

1.  That  the  claim  comes  within  the  provisions  of  this  chapter; 

2.  That  suflficient  notice  thereof  was  given; 

3.  That  the  injury  was  not  occasioned  by  the  willful  intention  of  the 
injured  employee  to  bring  about  the  injury  or  death  of  himself  or  of  another; 

4.  That  the  injury  did  not  result  solely  from  the  intoxication  of  the 
injured  employee  while  on  duty. 

Sec.  22.  Modification  of  award.  Upon  its  own  motion  or  upon  the 
application  of  any  party  in  interest,  on  the  ground  of  a  change  in  conditions, 
the  commission  may  at  any  time  review  any  award,  and,  on  such  review, 
may  make  an  award  ending,  diminishing  or  increasing  the  compensation 
previously  awarded,  subject  to  the  maximum  or  minimum  provided  in  this 
chapter,  and  shall  state  its  conclusions  of  fact  and  rulings  of  law,  and  shall 
immediately  send  to  the  parties  a  copy  of  the  award.  No  such  review  shall 
aflfect  such  award  as  regards  any  moneys  already  paid. 

Sec.  23.  [As  amended  by  Chapter  622,  Laws  of  1916.]  Appeals  from 
the  commission.  An  award  or  decision  of  the  commission  shall  be  final  and 
conclusive  upon  all  questions  within  its  jurisdiction,  as  against  the  state  fund 
or  between  the  parties,  unless  within  thirty  days  after  a  copy  of  such  award 
or  decision  has  been  sent  to  the  parties,  an  appeal  be  taken  to  the  appellate 
division  of  the  supreme  court  of  the  third  department.  The  commission 
may  also,  in  its  discretion,  on  the  application  of  either  party,  certify  to 
such  appellate  division  of  the  supreme  court,  questions  of  law  involved  in 
its  decision.  Such  appeals  and  the  questions  so  certified  shall  be  heard  in 
a  summary  manner  and  shall  have  precedence  over  all  other  civil  cases  in 
such  court.  The  commission  shall  be  deemed  a  party  to  every  such  appeal, 
and  the  attorney-general,  without  extra  compensation,  shall  represent  the 
commission  thereon.  An  appeal  may  also  be  taken  to  the  court  of  appeals 
in  all  cases  where  the  decision  of  the  appellate  division  is  not  unanimous 
and  by  the  consent  of  the  appellate  division  or  a  judge  of  the  court  of  appeals 
where  the  decision  of  the  appellate  division  is  unanimous  in  the  same  manner 
and  subject  to  the  same  limitations  not  inconsistent  herewith  as  is  now 
provided  in  civil  actions.  It  shall  not  be  necessary  to  file  exceptions  to  the 
rulings  of  the  commission.  The  commission  shall  not  be  required  to  file 
a  bond  upon  an  appeal  by  it  to  the  court  of  appeals.  Otherwise  such  appeals 
shall  be  subject  to  the  law  and  practice  applicable  to  appeals  in  civil  actions, 
l^pon  the  final  determination  of  such  an  appeal,  the  commission  shall  make 
an  award  or  decision  in  accordance  therewith. 

Sec.  24.  Costs  and  fees.  If  the  commission  or  the  court  before  which 
any  proceedings  for  compensation  or  concerning  an  award  of  compensation 
have  been  brought,  under  this  chapter,  determines  that  such  proceedings 
have  not  been  so  brought  upon  reasonable  ground,  it  shall  assess  the  whole 
cost  of  the  proceeding  upon  the  party  who  has  so  brought  them.  Claims 
for  legal  services  in  connection  with  any  claim  arising  under  this  chapter, 
and  claims  for  services  or  treatment  rendered  or  supplies  furnished  pursuant 
to  section  thirteen  of  this  chapter,  shall  not  be  enforceable  unless  approved 
by  the  commission.  If  so  approved,  such  claim  or  claims  shall  become  a 
lien  upon  the  compensation  awarded,  but  shall  be  paid  therefrom  only  in  the 
manner  fixed  by  the  commission. 

Sec.  25.  [As  amended  by  Chapter  167,  Laws  of  1915.]  Compensation, 
how    payable.     Compensation   under   the   provisions   of  this   chapter   shall   be 


—  35  — 

payable  periodically  by  the  employer,  in  accordance  with  the  method  of 
payment  of  the  wages  of  the  employee  at  the  time  of  his  injury  or  death, 
and  shall  be  so  provided  for  in  any  award;  but  the  commission  may  determine 
that  any  payments  may  be  made  monthly  or  at  any  other  period,  as  it  may 
deem  advisable.  The  state  fund  or  insurance  corporation  in  which  an  em- 
ployer is  insured  shall,  within  ten  days  after  demand  by  such  employer 
and  on  the  presentation  of  evidence  of  payment  of  compensation  in  accord- 
ance with  this  chapter,  reimburse  the  employer  therefor.  An  injured 
employee,  or  in  case  of  death  his  dependents  or  personal  representative, 
shall  give  receipts  for  payment  of  compensation  to  the  employer  paying 
the  same-  and  such  employer  shall  forward  receipts  therefor  promptly  to 
the  commission.  The  commission,  whenever  it  shall  so  deem  advisable,  may 
commute  such  periodical  payments  to  one  or  more  lump  sum  payments  to 
the  injured  employee  or,  in  case  of  death,  his  dependents,  provided  the 
same  shall  be  in  the  interest  of  justice. 

Sec.  26.  [As  amended  by  Chapter  167,  Laws  of  1915  and  by  Chapter  622, 
Laws  of  1916.]  Enforcement  of  payment  in  default.  If  payment  of  com- 
pensation, or  an  installment  thereof,  due  under  the  terms  of  an  award,  be 
not  made  by  the  employer  within  ten  days  after  the  same  is  due,  the  insurance 
carrier  shall  be  liable  therefor  and  if  not  paid  within  ten  days  after  demand  by 
the  injured  employee  or  in  case  of  death  his  dependents  or  by  the  commission, 
the  amount  of  such  payment  shall  constitute  a  liquidated  claim  for  damages 
against  the  employer,  the  self-insurer  or  insurance  corporation,  which  with 
an  added  penalty  of  fifty  per  centum  may  be  recovered  in  an  action  to  be 
instituted  by  the  commission  in  the  name  of  the  people  of  the  state.  An 
employer  who  negligently  or  intentionally  defaults  in  payment  of  compensa- 
tion in  the  first  instance  under  this  chapter  shall  be  liable  to  a  penalty  of 
not  more  than  ten  per  centum  of  the  amount  of  such  compensation,  not- 
withstanding the  fact  that  the  insurance  corporation  or  state  fund  subse- 
quently pays  the  compensation  as  provided  in  this  section.  If  such  default 
be  made  in  the  payment  of  an  installment  of  compensation  and  the  whole 
amount  of  such  compensation  be  not  due,  the  commission  may,  if  the  present 
value  of  such  compensation  be  computable,  declare  the  whole  amount  thereof 
due,  and  recover  the  amount  thereof  with  the  added  penalties,  as  provided 
by  this  section.  Any  such  action  may  be  compromised  by  the  commission 
or  may  be  prosecuted  to  final  judgment  as,  in  the  discretion  of  the  commis- 
sion, may  best  serve  the  interests  of  the  persons  entitled  to  receive  the 
compensation  or  the  benefits.  Compensation  recovered  under  this  section 
shall  be  disbursed  by  the  commission  to  the  persons  entitled  thereto  in 
accordance  with  the  award.  A  penalty  recovered  pursuant  to  this  section 
shall  be  paid  into  the  state  treasury,  and  be  applicable  to  the  expenses 
of  the  commission. 

In  case  of  default  by  the  employer  in  the  payment  of  any  com- 
pensation due  under  an  award  for  the  period  of  thirty  days  after 
payment  is  due  and  payable,  any  party  in  interest  may  file  with  the 
county  clerk  for  the  county  in  which  the  injury  occurred,  a  certified  copy 
of  a  decision  of  the  state  industrial  commission  awarding  compensation,  or 
ending,  diminishing  or  increasing  compensation  previously  awarded,  from 
which  no  appeal  has  been  taken  within  the  time  allowed  therefor,  and  there- 
upon judgment  must  be  entered  in  the  supreme  court  by  the  clerk  of  such 
county  in  conformity  therewith  immediately  upon  the  filing  of  such  decision. 
Such  decree  or  judgment  shall  be  entered  in  the  same  manner  and  shall  have 
the  same  effect   and  all   proceedings   in   relation  thereto   shall   thereafter   be 


—  36  — 

the  same,  as  though  said  decree  or  judgment  had  been  rendered  in  a  suit 
duly  heard  and  determined  by  the  supreme  court,  except  that  there  shall  be 
no  appeal  therefrom.  The  court  upon  the  filing  with  it  of  a  certified  copy 
of  a  decision  of  the  state  industrial  commission  ending,  diminishing  or  in- 
creasing compensation  previously  awarded,  shall  revoke  or  modify  its  prior 
decree  or  judgment  so  that  it  will  conform  to  said  decision.  Neither  the 
commission  nor  any  party  in  interest  shall  be  required  to  pay  any  fee  to  any 
public  officer  for  filing  or  recording  any  paper  or  instrument  executed  in 
pursuance  of  this  section. 

Sec.  27.  [As  amended  by  Chapter  622,  Laws  of  1916.]  Depositing  future 
payments.  If  an  award  under  this  chapter  requires  payment  of  compensation 
by  an  employer  or  an  insurance  corporation  in  periodical  payments,  and  the 
nature  of  the  injury  makes  it  possible  to  compute  the  present  value  of  all 
future  payments  with  due  regard  for  life  contingencies,  the  commission  may, 
in  its  discretion,  at  any  time,  compute  and  permit  or  require  to  be  paid 
into  the  state  fund  an  amount  equal  to  the  present  value  of  all  unpaid  com- 
})ensation  for  which  liability  exists,  together  with  such  additional  sum  as 
the  commission  may  deem  necessary  for  a  proportionate  payment  of  expenses 
of  administering  the  fund  so  created,  such  moneys  to  constitute  an  aggregate 
trust  fund;  and  thereupon  such  employer  or  insurance  corporation  shall  be 
discharged  from  any  further  liability  under  such  award  and  payment  of  the 
same  shall  be  assumed  by  the  trust  fund  so  created. 

The  moneys  so  paid  into  this  fund  shall  constitute  an  aggregate  trust  fund 
and  shall  be  kept  separate  and  apart  from  all  other  moneys  of  the  state  fund, 
and  shall  not  be  liable  for  any  expenses  of  administration  of  the  state  fund 
other  than  the  expenses  involved  in  the  administration  of  such  trust  fund. 

Sec.  28.  Limitation  of  right  to  compensation.  The  right  to  claim  com- 
pensation under  this  chapter  shall  be  forever  barred  unless  within  one  year 
after  the  injury,  or  if  death  result  therefrom,  within  one  year  after  such 
death,  a  claim  for  compensation  thereunder  shall  be  filed  with  the  commission. 

Sec.  29.  [As  amended  by  Chapter  622,  Laws  of  1916.]  Subrogation  to 
remedies  of  employees.  If  an  employee  entitled  to  compensation  under 
this  chapter  be  injured  or  killed  by  the  negligence  or  wrong  of  another 
not  in  the  same  employ,  such  injured  employee,  or  in  case  of  death, 
his  dependents,  shall,  before  any  suit  or  claim  under  this  chapter, 
elect  whether  to  take  compensation  under  this  chapter  or  to  pursue 
his  remedy  against  such  other.  Such  election  shall  be  evidenced  in  such 
manner  as  the  commission  may  by  rule  or  regulation  prescribe.  If  he  elect 
to  take  compensation  under  this  chapter,  the  cause  of  action  against  such 
other  shall  be  assigned  to  the  state  for  the  benefit  of  the  state  insurance  fund, 
if  compensation  be  payable  therefrom,  and  otherwise  to  the  person,  associa- 
tion, corporation,  or  insurance  carrier  liable  for  the  payment  of  such  compen- 
sation, and  if  he  elect  to  proceed  against  such  other,  the  state  insurance  fund, 
person,  association,  corporation,  or  insurance  carrier,  as  the  case  may  be, 
shall  contribute  only  the  deficiency,  if  any,  between  the  amount  of  the  re- 
covery against  such  other  person  actually  collected,  and  the  compensation 
provided  or  estimated  by  this  chapter  for  such  case.  Such  a  cause  of  action 
assigned  to  the  state  may  be  prosecuted  or  compromised  by  the  commission. 
A  compromise  of  any  such  cause  of  action  by  the  employee  or  his  dependents 
at  an  amount  less  than  the  compensation  provided  for  by  this  chapter  shall 
be  made  only  with  the  written  approval  of  the  commission,  if  the  deficiency 
of  compensation  would  be  payable  from  the  state  insurance  fund,  and  other- 
wise  with   the   written   approval   of   the   person,   association,   corporation,   or 


—  37  — 

insurance  carrier  liable  to  pay  the  same.  Wherever  an  employee  is  killed 
by  the  negligence  or  wrong  of  another  not  in  the  same  employ  and  the 
dependents  of  such  employee  entitled  to  compensation  under  this  chapter 
are  minors,  such  election  to  take  compensation  and  the  assignment  of  the 
cause  of  action  against  such  other  and  such  notice  of  election  to  pursue  a 
remedy  against  such  other  shall  be  made  by  such  minor,  or  shall  be  made 
on  behalf  of  such  minor  by  a  parent  of  such  minor,  or  by  his  or  her  duly 
appointed  guardian,  as  the  commission  may  determine  by  rule  in  each  case. 

Sec.  30.  Revenues  or  benefits  from  other  sources  not  to  affect  com- 
pensation. No  benefits,  savings  or  insurance  of  the  injured  employee,  inde- 
pendent of  the  provisions  of  this  chapter,  shall  be  considered  in  determining 
the  compensation  or  benefits  to  be  paid  under  this  chapter  except  that,  in 
case  of  the  death  of  an  employee  of  the  state,  a  municipal  corporation  or 
any  other  political  subdivision  of  the  state,  any  benefit  payable  under  a 
pension  system  which  is  not  sustained  in  whole  or  in  part  by  the  contributions 
of  the  employee,  may  be  applied  toward  the  payment  of  the  death  benefit 
provided  by  this  chapter. 

Sec.  31.  Agreement  for  contribution  by  employee  void.  No  agreement 
by  an  employee  to  pay  any  portion  of  the  premium  paid  by  his  employer 
to  the  state  insurance  fund  or  to  contribute  to  a  benefit  fund  or  department 
maintained  by  such  employer  or  to  the  cost  of  mutual  insurance  or  other 
insurance,  maintained  for  or  carried  for  the  purpose  of  providing  compensa- 
tion as  herein  required,  shall  be  valid,  and  any  employer  who  makes  a 
deduction  for  such  purpose  from  the  wages  or  salary  of  any  employee  entitled 
to  the  benefits  of  this  chapter  shall  be  guilty  of  a  misdemeanor. 

Sec.  32.  Waiver  agreements  void.  No  agreement  by  an  employee  to 
waive  his  right  to  compensation  under  this  chapter  shall  be  valid. 

Sec.  33.  Assignments;  exemptions.  Claims  for  compensation  or  benefits 
due  under  this  chapter  shall  not  be  assigned,  released  or  commuted  except 
as  provided  by  this  chapter,  and  shall  be  exempt  from  all  claims  of  creditors 
and  from  levy,  execution  and  attachment  or  other  remedy  for  recovery  or 
collection  of  a  debt,  which  exemption  may  not  be  waived.  Compensation 
and  benefits  shall  be  paid  only  to  employees  or  their  dependents. 

Sec.  34.  [As  amended  by  Chapter  622,  Laws  of  1916.]  Preferences. 
The  right  of  compensation  granted  by  this  chapter  and  any  awards  made 
thereunder  shall  have  the  same  preference  or  lien  without  limit  of  amount 
against  the  assets  of  the  employer  as  is  now  or  hereafter  may  be  allowed 
by  law  for  a  claim  for  unpaid  wages  for  labor. 

ARTICLE  3. 

Security  for  Compensation 

Sec.  50.  Security  for  payment  of  compensation. 

51.  Posting  of  notice  regarding  compensation. 

52.  Effect  of  ■  failure  to  secure  compensation. 
58.  Release  from  all  liability. 

54.     The  insurance  contract. 
Sec.  50.     [As    amended   by   Chapter    622,   Laws   of    1916.]      Security    for 
payment   of   compensation.      An   employer   shall   secure   comi)ensation    to   his 
employees  in  one  of  the  following  ways: 

1.  By  insuring  and  keeping  insured  the  payment  of  such  compensation 
in  the  state  fund,  or 

2.  By  insuring  and  keeping  insured  the  payment  of  such  compensation 
with  any  stock  corporation  or  mutual  association  authorized  to  transact  the 


—  88  — 

business  of  workmen's  compensation  insurance  in  this  state.  If  insurance 
be  so  effected  in  such  a  corporation  or  mutual  association  the  employer 
shall  forthwith  file  with  the  commission,  in  form  prescribed  by  it,  a  notice 
specifying  the  name  of  such  insurance  corporation  or  mutual  association  and 
such  information  regarding  the   policies  as  the  commission  may  require. 

3.  By  furnishing  satisfactory  proof  to  the  commission  of  his  financial 
ability  to  pay  such  compensation  for  himself,  in  which  case  the  commission 
may,  in  its  discretion,  require  the  deposit  with  the  commission  of  securities 
of  the  kind  prescribed  in  section  thirteen  of  the  insurance  law,  in  an  amount 
to  be  determined  by  the  commission,  to  secure  his  liability  to  pay  the  com- 
pensation provided  in  this  chapter.  The  commission  shall  have  the  authority 
to  revoke  its  consent  furnished  under  this  section  at  any  time  for  good  cause 
shown. 

If  an  employer  fail  to  comply  with  this  section,  he  shall  be  liable  to  a 
l)enalty  during  which  such  failure  continues  of  an  amount  equal  to  the  pro 
rata  premium  which  would  have  been  payable  for  insurance  in  the  state  fund 
for  such  period  of  non-compliance  to  be  recovered  in  an  action  brought  by 
the  commission. 

The  commission  may,  in  its  discretion,  for  good  cause  shown,  remit  any 
such  penalty,  provided  the  employer  in  default  secure  compensation  as 
l)rovided  in  this  section. 

Sec.  51.  Posting  of  notice  regarding  compensation.  Every  employer 
who  has  complied  with  section  fifty  of  this  chapter  shall  post  and  maintain 
in  a  conspicuous  place  or  places  in  and  about  his  place  or  places  of  business 
typewritten  or  printed  notices  in  form  prescribed  by  the  commission,  stating 
the  fact  that  he  has  complied  with  all  the  rules  and  regulations  of  the 
commission  and  that  he  has  secured  the  payment  of  compensation  to  his 
employees  and  their  dependents  in  accordance  with  the  provisions  of  this 
chapter. 

Sec.  52.  [As  amended  by  Chapter  622,  Laws  of  1916.]  Effect  of  failure 
to  secure  compensation.  Failure  to  secure  the  payment  of  compensation  shall 
constitute  a  misdemeanor  and  have  the  effect  of  enabling  the  injured  employee 
or  in  case  of  death,  his  dependents  or  legal  representatives,  to  maintain  an 
action  for  damages  in  the  courts,  as  prescribed  by  section  eleven  of  this 
chapter. 

Sec.  53.  Release  from  all  liability.  An  employer  securing  the  payment 
of  compensation  by  contributing  premiums  to  the  state  fund  shall  thereby 
become  relieved  from  all  liability  for  personal  injuries  or  death  sustained 
by  his  employees,  and  the  persons  entitled  to  compensation  under  this  chapter 
shall  have  recourse  therefor  only  to  the  state  fund  and  not  to  the  employer. 
An  employer  shall  not  otherwise  be  relieved  from  the  liability  for  compensa- 
tion prescribed  by  this  chapter  except  by  the  payment  thereof  by  himself  or 
his  insurance  carrier. 

Sec.  54.  [As  amended  by  Chapter  622,  Laws  of  1916.]  The  insurance 
contract.  1.  Right  of  recourse  to  the  insurance  carrier.  Every  policy  of 
insurance  covering  the  liability  of  the  employer  for  compensation  issued  by 
a  stock  company  or  by  a  mutual  association  authorized  to  transact  work- 
men's compensation  insurance  in  this  state  shall  contain  a  provision  setting 
forth  the  right  of  the  commission  to  enforce  in  the  name  of  the  people  of 
the  state  of  New  York  for  the  benefit  of  the  person  entitled  to  the  com- 
pensation insured  by  the  policy  either  by  filing  a  separate  application  or 
by  making  the  insurance  carrier  a  party  to  the  original  application,  the 
liability   of   the  insurance  carrier   in   whole   or   in   part   for   the   payment    of 


—  39  — 

such  compensation;  provided,  however,  that  payment  in  whole  or  in  part  of 
such  compensation  by  either  the  employer  or  the  insurance  carrier  shall  to 
the  extent  thereof  be  a  bar  to  the  recovery  against  the  other  of  the  amount 
so  paid. 

2.  Knowledge  and  jurisdiction  of  the  employer  extended  to  cover  the 
insurance  carrier.  Every  such  policy  shall  contain  a  provision  that,  as  be- 
tween the  employee  and  the  insurance  carrier,  the  notice  to  or  knowledge  of 
the  occurrence  of  the  injury  on  the  part  of  the  employer  shall  be  deemed 
notice  or  knowledge,  as  the  case  may  be,  on  the  part  of  the  insurance  carrier; 
that  jurisdiction  of  the  employer  shall,  for  the  purpose  of  this  chapter,  be 
jurisdiction  of  the  insurance  carrier  and  that  the  insurance  carrier  shall 
in  all  things  be  bound  by  and  subject  to  the  orders,  findings,  decisions  or 
awards  rendered  against  the  employer  for  the  payment  of  compensation  under 
the  provisions  of  this  chapter. 

3.  Insolvency  of  employer  does  not  release  the  insurance  carrier.  Every 
such  policy  shall  contain  a  provision  to  the  effect  that  the  insolvency  or 
bankruptcy  of  the  employer  shall  not  relieve  the  insurance  carrier  from  the 
payment  of  compensation  for  injuries  or  death  sustained  by  an  employee 
during  the  life  of  such  policy. 

4.  Limitation  of  indemnity  agreements.  Every  contract  or  agreement 
of  an  employer  the  purpose  of  which  is  to  indemnify  him  from  loss  or  damage 
on  account  of  the  injury  of  an  employee  by  accidental  means,  or  on  account 
of  the  negligence  of  such  employer  or  his  officer,  agent  or  servant,  shall  be 
absolutely  void  unless  it  shall  also  cover  liability  for  the  payment  of  the 
compensation  provided  for  by  this  chapter. 

5.  Cancellation  of  insurance  contracts.  No  contract  of  insurance  issued 
by  an  insurance  carrier  against  liability  arising  under  this  chapter  shall  be 
cancelled  within  the  time  limited  in  such  contract  for  its  expiration  until 
at  least  ten  days  after  a  notice  of  cancellation  of  such  contract,  on  a  date 
specified  in  such  notice,  shall  be  filed  in  the  office  of  the  commission  and  also 
served  on  the  employer.  Such  notice  shall  be  served  on  the  employer  by 
delivering  it  to  him  or  by  sending  it  by  mail,  by  registered  letter,  addressed 
to  the  employer  at  his  or  its  last  known  place  of  residence;  provided  that, 
if  the  employer  be  a  partnership,  then  such  notice  may  be  so  given  to  any 
one  of  the  partners,  and  if  the  employer  be  a  corporation,  then  the  notice 
may  be  given  to  any  agent  or  officer  of  the  corporation  upon  whom  legal 
process  may  be  served.  Provided,  however,  the  right  to  cancellation  of  a 
policy  of  insurance  in  the  state  fund  shall  be  exercised  only  for  non-payment 
of  premiums. 

6.  Any  insurance  carrier  may  issue  policies,  including  with  employees, 
employers  who  perform  labor  incidental  to  their  occupations,  such  policies 
insuring  to  such  employers  the  same  compensations  provided  for  their 
employees,  and  at  the  same  rates;  provided,  however,  that  the  estimation 
of  their  wage  values,  respectively,  shall  be  reasonable  and  separately  stated 
in  and  added  to  the  valuation  of  their  pay  rolls  upon  which  their  premium 
is  computed.  The  employer  so  insured  shall  have  the  same  rights  and 
remedies  given  an  employee  by  this  chapter. 

ARTICLE  4. 

State   Workmen's   Compensation"    Commission* 
Sec.  60.     Repealed. 


^Superseded    by    Industrial    Commission    (Chapter    674,    Laws    of    1915).      See 
section  4,   page  48   of  this  pamphlet. 


—  40  — 

61.  Repealed. 

62.  Salaries  and  expenses. 

63.  Office. 

64.  Sessions  of  commission. 

65.  Powers  of  individual  commissioners   and  deputy  commissioners. 

66.  Powers  and  duties  of  secretary. 

67.  Rules. 

68.  Technical  rules  of  evidence  or  procedure  not  required. 

69.  Issue  of  subpoena;  penalty  for  failure  to  obey. 

70.  Recalcitrant  witnesses  punishable  as  for  contempt. 

71.  Fees  and  mileage  of  witnesses. 

72.  Depositions. 

73.  Transcript  of  stenographer's  minutes;  effect  as  evidence. 

74.  Jurisdiction  of  commission  to  be  continuing. 

75.  Report  of  commission. 

76.  Commission  to  furnish  blank  forms. 

77.  Expenses  of  administering  commission. 
Sec.  60.  (Repealed  by  Chapter  674,  Laws  of  1915.) 
Sec.  61.  (Repealed  by  Chapter  674,  Laws  of  1915.) 

Sec.  62.  [As  amended  by  Section  2  of  Chapter  674,  Laws  of  1915.]  Ex- 
penses. The  commission  may  make  the  necessary  expenditure  to  obtain 
statistical  and  other  information  to  establish  classifications  of  employments 
with  respect  to  hazards  and  risks.  The  expenses  of  the  commission,  including 
the  premiums  to  be  paid  by  the  state  treasurer  for  the  bond  to  be  furnished 
by  him,  shall  be  paid  out  of  the  state  treasury  upon  vouchers  signed  by  at 
least  two  commissioners. 

Sec.  63.  Office.  The  commission  shall  keep  and  maintain  its  principal 
office  in  the  city  of  Albany,  in  rooms  in  the  capitol  assigned  by  the  trustees 
of  public  buildings.  The  office  shall  be  supplied  with  necessary  office  furni- 
ture, supplies,  books,  maps,  stationery,  telephone  connections  and  other  neces- 
sary appliances,  at  the  expense  of  the  state,  payable  in  the  same  manner 
as  other  expenses  of  the  commission. 

Sec.  64.  Sessions  of  commission.  The  commission  shall  be  in  continuous 
session  and  open  for  the  transaction  of  business  during  all  business  hours  of 
every  day  excepting  Sundays  and  legal  holidays.  All  sessions  shall  be  open 
to  the  public  and  may  be  adjourned,  upon  entry  thereof  in  its  records, 
without  further  notice.  Whenever  convenience  of  parties  will  be  promoted 
or  delay  and  expense  prevented,  the  commission  may  hold  sessions  in  cities 
other  than  the  city  of  Albany.  A  party  may  appear  before  such  commission 
and  be  heard  in  person  or  by  attorney.  Every  vote  and  official  act  of  the 
commission  shall  be  entered  of  record,  and  the  records  shall  contain  a  record 
of  each  case  considered,  and  the  award,  decision  or  order  made  with  respect 
thereto,  and  all  voting  shall  be  by  the  calling  of  each  commissioner's  name 
by  the  secretary  and  each  vote  shall  be  recorded  as  cast.  A  majority  of  the 
commission  shall  constitute  a  quorum.  A  vacancy  shall  not  impair  the  right 
of  the  remaining  commissioners  to  exercise  all  the  powers  of  the  full  com- 
mission so  long  as  a  majority  remains. 

Sec.  65.  Powers  of  individual  commissioners  and  deputy  commissioners. 
Any  investigation,  inquiry  or  hearing  which  the  conmiission  is  authorized  to 
hold  or  undertake  may  be  held  or  taken  by  or  before  any  commissioner  or 
deputy  commissioner,  and  the  award,  decision  or  order  of  a  commissioner  or 
deputy  commissioner,  when  approved  and  confirmed  by  the  conunission  and 
ordered  filed  in  its  office,  shall  be  deemed  to  be  the  award,  decision  or  order 


—  41  — 

of  the  commission.  Each  commissioner  and  deputy  shall,  for  the  purposes  of 
this  chapter,  have  power  to  administer  oaths,  certify  to  oflficial  acts,  take 
depositions,  issue  subpoenas,  compel  the  attendance  of  witnesses  and  the  pro- 
duction of  books,  accounts,  papers,  records,  documents  and  testimony.  The 
commission  may  authorize  any  deputy  to  conduct  any  such  investigation, 
inquiry  or  hearing,  in  which  case  he  shall  have  the  power  of  a  commissioner 
in  respect  thereof. 

Sec.  66.  Powers  and  duties  of  secretary.  The  secretary  of  the  com- 
mission shall: 

1.  Maintain  a  full  and  true  record  of  all  proceedings  of  the  commission, 
of  all  documents  or  papers  ordered  filed  by  the  commission,  of  decisions  or 
orders  made  by  a  commissioner  or  deputy  commissioner,  and  of  all  decisions 
or  orders  made  by  the  commission  or  approved  and  confirmed  by  it  and 
ordered  filed,  and  he  shall  be  responsible  to  the  commission  for  the  safe 
custody  and  preservation  of  all  such  documents  at  its  office; 

2.  Have  power  to  administer  oaths  in  all  parts  of  the  state,  so  far  as 
the  exercise  of  such  power  is  properly  incident  to  the  performance  of  his 
duty  or  that  of  the  commission; 

3.  Designate,  from  time  to  time,  with  the  approval  of  the  commission, 
one  of  the  clerks  appointed  by  the  commission  to  exercise  the  powers  and 
duties  of  the  secretary  during  his  absence; 

4.  Under  the  direction  of  the  commission,  have  general  charge  of  its 
office,  superintend  its  clerical  business,  and  perform  such  other  duties  as  the 
commission  may  prescribe. 

Sec.  67.  [As  amended  by  Chapter  622,  Laws  of  1916.]  Rules.  The 
commission  shall  adopt  reasonable  rules,  not  inconsistent  with  this  chapter, 
regulating  and  providing  for 

1.  The  kind  and  character  of  notices,  and  the  service  thereof,  in  case 
of  accident  and  injury  to  employees; 

2.  The  nature  and  extent  of  the  proofs  and  evidence,  and  the  method 
of  taking  and  furnishing  the  same,  to  establish  the  right  to  compensation; 

3.  The  forms  of  application  for  those  claiming  to  be  entitled  to  com- 
pensation; 

4.  The  method  of  making  investigations,  physical  examinations  and 
inspections ; 

5.  The  time  within  which  adjudications  and  awards  shall  be  made; 

6.  The  conduct  of  hearings,   investigations  and  inquiries; 

7.  The  giving  of  undertakings  by  all  subordinates  who  are  empowered 
to  receive  and  disburse  moneys,  to  be  approved  by  the  attorney-general  as 
to  form  and  by  the  comptroller  as  to  sufficiency; 

8.  Carrying  into  effect  the  provisions  of  this  chapter. 

9.  The  collection,  maintenance  and  disbursement  of  the  state  insurance 
fund. 

Sec.  68.  Technical  rules  of  evidence  or  procedure  not  required.  The 
commission  or  a  commissioner  or  deputy  commissioner  in  making  an  investiga- 
tion or  inquiry  or  conducting  a  hearing  shall  not  be  bound  by  common  law 
or  statutory  rules  of  evidence  or  by  technical  or  formal  rules  of  procedure, 
except  as  provided  by  this  chapter;  but  may  make  such  investigation  or 
inquiry  or  conduct  such  hearing  in  such  manner  as  to  ascertain  the  substantial 
rights  of  the  parties. 

Sec.  69.  Issue  of  subpoena;  penalty  for  failure  to  obey.  A  subpoena 
shall  be  signed  and  issued  by  a  commissioner,  a  deputy  commissioner  or  by 
the  secretary  of  the  commission   and  may  be  served   by  any  person  of  full 


—  42  — 

age  in  the  same  manner  as  a  subpoena  issued  out  of  a  court  of  record.  If 
a  person  fail,  without  reasonable  cause,  to  attend  in  obedience  to  a  subpoena, 
or  to  be  sworn  or  examined  or  answer  a  question  or  produce  a  book  or  paper, 
or  to  subscribe  and  swear  to  his  deposition  after  it  has  been  correctly  reduced 
to  writing,  he  shall  be  guilty  of  a  misdemeanor. 

Sec.  70.  Recalcitrant  witnesses  punishable  as  for  contempt.  If  a  person 
in  attendance  before  the  commission  or  a  commissioner  or  deputy  commis- 
sioner refuses,  without  reasonable  cause,  to  be  examined,  or  to  answer  a 
legal  and  pertinent  question  or  to  produce  a  book  or  paper,  when  ordered 
so  to  do  by  the  commission  or  a  commissioner  or  deputy  commissioner,  the 
commission  may  apply  to  a  justice  of  the  supreme  court  upon  proof  by 
affidavit  of  the  facts  for  an  order  returnable  in  not  less  than  two  nor  more 
than  five  days  directing  such  person  to  show  cause  before  the  justice  who 
made  the  order,  or  any  other  justice  of  the  supreme  court,  why  he  should 
not  be  committed  to  jail.  Upon  the  return  of  such  order  the  justice  shall 
examine  under  oath  such  person  and  give  him  an  opportunity  to  be  heard; 
and  if  the  justice  determine  that  he  has  refused  without  reasonable  cause 
or  legal  excuse  to  be  examined  or  to  answer  a  legal  and  pertinent  question, 
or  to  produce  a  book  or  paper  which  he  was  ordered  to  bring,  he  may  fortli- 
with,  by  warrant,  commit  the  offender  to  jail,  there  to  remain  until  he  sub- 
mits to  do  the  act  which  he  was  so  required  to  do  or  is  discharged  according 
to  law. 

Sec.  71.  Fees  and  mileage  of  witnesses.  Each  witness  who  appears  in 
obedience  to  a  subpoena  before  the  commission  or  a  commissioner  or  deputy 
commissioner,  or  person  employed  by  the  commission  to  obtain  the  required 
information,  shall  receive  for  his  attendance  the  fees  and  mileage  provided 
for  witnesses  in  civil  cases  in  the  supreme  court,  which  shall  be  audited  and 
paid  from  the  state  treasury  in  tlie  same  manner  as  other  expenses  of  the 
commission.  A  witness  subpoenaed  at  the  instance  of  a  party  other  than 
the  commission,  a  commissioner,  deputy  commissioner  or  person  acting  under 
the  authority  of  the  commission  shall  be  entitled  to  fees  or  compensation 
from  the  state  treasury,  if  the  commission  certify  that  his  testimony  was 
material  to  the  matter  investigated,  but  not  otherwise. 

Sec.  72.  Depositions.  The  commission  may  cause  depositions  of  wit- 
nesses residing  within  or  without  the  state  to  be  taken  in  the  manner  pre- 
scribed by  law  for  like  depositions  in  civil  actions  in  the  supreme  court. 

Sec.  73.  Transcript  of  stenographer's  minutes;  effect  as  evidence.  A 
transcribed  copy  of  the  testimony,  evidence  and  procedure  or  of  a  specific 
part  thereof,  or  of  the  testimony  of  a  particular  witness  or  of  a  specific  part 
thereof,  on  any  investigation,  by  a  stenographer  appointed  by  the  commission, 
being  certified  by  such  stenographer  to  be  a  true  and  correct  transcript 
thereof  and  to  have  been  carefully  compared  by  him  with  his  original  notes, 
may  be  received  in  evidence  by  the  commission  with  the  same  effect  as  if  such 
stenographer  were  present  and  testified  to  the  facts  so  certified,  and  a  copj^ 
of  such  transcript  shall  be  furnished  on  demand  to  any  party  upon  payment 
of  the  fee  provided  for  a  transcript  of  similar  minutes  in  the  supreme  court. 

Sec.  74.  Jurisdiction  of  commission  to  be  continuing.  The  power  and 
jurisdiction  of  the  commission  over  each  case  shall  be  continuing,  and  it  may, 
from  time  to  time,  make  such  modification  or  change  with  respect  to  former 
findings  or  orders  relating  thereto,  as  in  its  opinion  may  be  just. 

*Sec.  75.  [As  re-enacted  by  Chapter  622,  Laws  of  1916.]  Report  of 
commission.     Annually  on  or  before  the  first  day  of  February,  the  commission 

*Re-enacted  without  change. 


—  43  — 

shall  make  a  report  to  the  legislature,  which  shall  include  a  statement  of 
the  number  of  awards  made  by  it  and  the  causes  of  the  accidents  leading 
to  the  injuries  for  which  the  awards  were  made,  a  detailed  statement  of 
the  expenses  of  the  commission,  the  condition  of  the  state  insurance  fund, 
together  with  any  other  matter  which  the  commission  deems  proper  to  report 
to  the  legislature,  including  any  recommendations  it  may  desire  to  make. 

Sec.  76.  Commission  to  furnish  blank  forms.  The  commission  shall 
prepare  and  cause  to  be  distributed  so  that  the  same  may  be  readily  avail- 
able blank  forms  of  application  for  compensation,  notice  to  employers, 
proofs  of  injury  or  death,  of  medical  or  other  attendance  or  treatment,  of 
employment  and  wage  earnings,  and  for  such  other  purposes  as  may  be 
required.  Insured  employers  shall  constantly  keep  on  hand  a  suflBcient  supply 
of  such  blanks. 

tSec.  77.  [Added  by  Chapter  622,  Laws  of  1916.]  Expenses  of  admin- 
istering commission.  As  soon  as  practicable  after  July  first,  nineteen  hundred 
and  seventeen,  and  annually  thereafter,  the  commission  shall  ascertain  the 
total  amount  of  its  expenses  incurred  during  the  preceding  fiscal  year,  in 
connection  with  the  administration  of  the  workmen's  compensation  law,  and 
shall  thereupon  assess  upon  and  collect  from  each  insurance  carrier,  including 
the  state  insurance  fund,  the  proportion  of  such  expense  that  the  total  com- 
pensation or  payments  made  by  such  carrier  in  such  year  bore  to  the  total 
compensation  or  payments  made  by  all  insurance  carriers.  The  amounts  so 
secured  shall  be  transferred  to  the  state  treasury  to  reimburse  it  for  this 
portion  of  the  expense  of  administering  this  chapter. 

ARTICLE  5 

State  Insurance  Fund 

Sec.  90.  Creation  of  state  fund. 

91.  State  treasurer  custodian  of  fund. 

92.  Surplus  and  reserve. 

93.  Investment  of  surplus  or  reserve. 

94.  Administration  expense. 

95.  Classification  of  risks  and  adjustment  of  premiums. 

96.  Associations  for  accident  prevention. 

97.  Requirements  in  classifying  employment  and  fixing  and  adjusting 

premium  rates. 

98.  Time  of  payment  of  premiums. 

99.  Action  for  collection  in  case  of  default. 

100.  Withdrawal  from  fund. 

101.  Audit  of  payrolls. 

102.  Falsification  of  payroll. 

103.  Wilful  misrepresentation. 

104.  Inspections. 

105.  Disclosures  prohibited. 

106.  Reports  of  state  insurance  fund;  examination  by  insurance  de- 

partment. 
Sec.  90.  Creation  of  state  fund.  There  is  hereby  created  a  fund  to  be 
known  as  "The  State  Insurance  Fund,"  for  the  purpose  of  insuring  employers 
against  liability  under  this  chapter  and  of  assuring  to  the  persons  entitled 
thereto  the  compensation  provided  by  this  chapter.  Such  fund  shall  consist 
of  all  premiums  received  and  paid  into  the  fund,  of  property  and  securities 


tChapter  622,  Laws  of  1916,  adds  this  section  to  Article  Seven.  Inasmuch 
as  this  section  relates  to  Article  Four,  and  the  number  assigned  to  it  (viz.  77) 
would  place  it  in  Article  Four,  we  have  so  placed  it. 


—  44  — 

acquired  by  and  through  the  use  of  moneys  belonging  to  the  fund  and  of 
interest  earned  upon  moneys  belonging  to  the  fund  and  deposited  or  invested 
as  herein  provided.  Such  fund  shall  be  administered  by  the  commission 
without  liability  on  the  part  of  the  state  beyond  the  amount  of  such  fund. 
Such  fund  shall  be  applicable  to  the  payment  of  losses  sustained  on  account 
of  insurance  and  to  the  payment  of  expenses  in  the  manner  provided  in 
this  chapter. 

Sec.  91.  State  treasurer  custodian  of  fund.  The  state  treasurer  shall 
be  the  custodian  of  the  state  insurance  fund;  and  all  disbursements  there- 
from shall  be  paid  by  him  upon  vouchers  authorized  by  the  commission  and 
signed  by  any  two  members  thereof.  The  state  treasurer  shall  give  a  se})arate 
and  additional  bond  in  an  amount  to  be  fixed  by  the  governor  and  with 
sureties  approved  by  the  state  comptroller  conditioned  for  the  faithful  per- 
formance of  his  duty  as  custodian  of  the  state  fund.  The  state  treasurer 
may  depo5>\t  any  portion  of  the  state  fund  not  needed  for  immediate  use, 
in  the  manner  and  subject  to  all  the  provisions  of  law  respecting  the  deposit 
of  other  state  funds  by  him.  Interest  earned  by  such  portion  of  the  state 
insurance  fund  deposited  by  the  state  treasurer  shall  be  collected  by  him 
and  placed  to  the  credit  of  the  fund. 

Sec.  92.  [As  amended  by  Chapter  622,  Laws  of  1916.]  Surplus  and 
reserves.  Ten  per  centum  of  the  premiums  collected  from  employers  insured 
in  the  fund  shall  be  set  aside  by  the  commission  for  the  creation  of  a  surplus 
until  such  surplus  shall  amount  to  the  sum  of  one  hundred  thousand  dollars, 
and  thereafter  five  per  centum  of  such  premiums,  until  such  time  as  in  the 
judgment  of  the  commission  such  surplus  shall  be  sufficiently  large  to  cover 
the  catastrophe  hazard.  The  commission  shall  also  set  up  and  maintain 
reserves  adequate  to  meet  anticipated  losses  and  carry  all  claims  and  policies 
to  maturity,  which  reserves  shall  be  computed  in  accordance  with  such  rules 
as  shall  be  approved  by  the  superintendent  of  insurance. 

Sec.  93.  [As  amended  by  Chapter  622,  Laws  of  1916.]  Investment  of 
surplus  or  reserve.  Any  of  the  surplus  or  reserve  funds  belonging  to  the 
state  insurance  fund  may,  pursuant  to  a  resolution  of  the  commission  approved 
by  the  superintendent  of  insurance,  be  invested  in  or  loaned  on  the  pledge 
of  any  of  the  securities  in  which  deposits  of  insurance  corporations  are  re- 
quired to  be  invested  pursuant  to  section  thirteen  of  the  insurance  law,  or 
in  the  public  stocks  or  bonds  of  any  one  of  the  United  States,  or  in  bonds 
and  mortgages  on  improved  unencumbered  real  property  in  this  state  worth 
fifty  per  centum  more  than  the  amount  loaned  thereon.  All  such  securities 
or  evidences  of  indebtedness  shall  be  placed  in  the  hands  of  the  state  treas- 
urer who  shall  be  the  custodian  thereof.  He  shall  collect  the  principal  and 
interest  thereof,  when  due,  and  pay  the  same  into  the  state  insurance  fund. 
The  state  treasurer  shall  pay  aU  vouchers  drawn  on  the  state  insurance  fund 
for  the  making  of  such  investments  when  signed  by  two  members  of  the 
commission,  upon  delivery  of  such  securities  or  evidences  of  indebtedness  to 
him,  when  there  is  attached  to  such  vouchers  a  certified  copy  of  the  resolu- 
tion of  the  commission  authorizing  the  investment.  The  commission  may, 
upon  like  resolution  approved  by  the  superintendent  of  insurance,  sell  any 
of  such  securities. 

Sec.  94.  [As  amended  by  Chapter  622,  Laws  of  1916.]  Administration 
expense.  The  entire  expense  of  administering  the  state  insurance  fund  shall 
be  paid  in  the  first  instance  by  the  state,  out  of  moneys  appropriated  there- 
for. In  the  month  of  July,  nineteen  hundred  and  seventeen,  and  annually 
thereafter   in    such   month,   the   commission    shall   ascertain   the   just   amount 


—  45  — 

incurred  by  the  commission  during  the  preceding  fiscal  year,  in  the  admin- 
istration of  the  state  insurance  fund,  and  shall  refund  such  amount  to  the 
state  treasury.  If  there  be  employees  of  the  commission  other  than  the 
commissioners  themselves  and  the  secretary  whose  time  is  devoted  partly 
to  the  general  work  of  the  commission  and  partly  to  the  work  of  the  state 
insurance  fund,  and  in  case  there  is  other  expense  which  is  incurred  jointly 
on  behalf  of  the  general  work  of  the  commission  and  the  state  insurance 
fund,  an  equitable  apportionment  of  the  expense  shall  be  made  for  such  pur- 
pose and  the  part  thereof  which  is  applicable  to  the  state  insurance  fund 
shall  be  chargeable  thereto. 

Sec.  95.  Classification  of  risks  and  adjustment  of  premiums.  Employ- 
ments coming  under  the  provisions  of  this  chapter  shall  be  divided  for  the 
purposes  of  the  state  fund,  into  the  groups  set  forth  in  section  two  of  this 
chapter.  Separate  accounts  shall  be  kept  of  the  amounts  collected  and  ex- 
pended in  respect  to  each  such  group  for  convenience  in  determining  equitable 
rates;  but  for  the  purpose  of  paying  compensation  the  state  fund  shall  be 
deemed  one  and  indivisable.  The  commission  shall  have  power  to  rearrange 
any  of  the  groups  set  forth  in  section  two  by  withdrawing  any  employment 
embraced  in  it  and  transferring  it  wholly  or  in  part  to  any  other  group,  and 
from  such  employments  to  set  up  new  groups  at  its  discretion.  The  com- 
mission shall  determine  the  hazards  of  the  different  classes  composing  each 
group  and  fix  the  rates  of  premiums  therefor  based  upon  the  total  payroll 
and  number  of  employees  in  each  of  such  classes  of  employment  at  the  low- 
est possible  rate  consistent  with  the  maintenance  of  a  solvent  state  insurance 
fund  and  the  creation  of  a  reasonable  surplus  and  reserve;  and  for  such 
purpose  may  adopt  a  system  of  schedule  rating  in  such  a  manner  as  to  take 
account  of  the  peculiar  hazard  of  each  individual  risk. 

Sec.  96.  Associations  for  accident  prevention.  The  employers  in  any 
of  the  groups  described  in  section  two  or  established  by  the  commission  may 
with  the  approval  of  the  commission  form  themselves  into  an  association  for 
accident  prevention,  and  may  make  rules  for  that  purpose.  If  the  com- 
mission is  of  the  opinion  tb-^t  an  association  so  formed  sufficiently  represents 
the  employers  in  such  group,  it  may  approve  such  rules,  and  when  so  approved 
and  approved  by  the  industrial  board  of  the  labor  department  they  shall  be 
binding  on  all  employers  in  such  group.  If  such  an  approved  association 
appoint  an  inspector  or  expert  for  the  purpose  of  accident  prevention,  the 
commission  may  at  its  discretion  provide  in  whole  or  in  part  for  the  payment 
of  the  remuneration  and  expenses  of  such  inspector  or  expert,  such  payment 
to  be  charged  in  the  accounting  to  such  group.  Every  such  approved  associa- 
tion may  make  recommendations  to  the  commission  concerning  the  fixing  of 
premiums   for  classes  of  hazards,  and  for  individual  risks  within  such  group. 

Sec.  97.  [As  amended  by  Chapter  622,  Laws  of  1916.]  Requirements 
in  classifying  employment  and  fixing  and  adjusting  premium  rates.  The 
following  requirements  shall  be  observed  in  classifying  employments  and  fixing 
and  adjusting  premium  rates: 

1.  The  commission  shall  keep  an  accurate  account  of  the  money  paid  in 
premiums  by  each  of  the  several  classes  of  employments  or  industries,  and 
the  disbursements  on  account  of  injuries  and  deaths  of  employees  thereof, 
including  the  setting  up  of  reserves  adequate  to  meet  anticipated  losses  and 
to  carry  the  claims  to  maturity,  and  also,  on  account  of  the  money  received 
from  each  individual  employer  and  the  amount  disbursed  from  the  state 
insurance  fund  on  account  of  injuries  and  death  of  the  employees  of  such 
employer,  including  the  reserves  so  set  up; 


—  46  — 

2.  On  January  first,  nineteen  hundred  and  fifteen,  and  every  fifth  year 
thereafter,  and  at  such  other  times  as  the  commission,  in  its  discretion,  may 
determine,  a  readjustment  of  the  rate  shall  be  made  for  each  of  the  several 
groups  of  employment  or  industries  and  of  each  hazard  class  therein,  which, 
in  the  judgment  of  the  commission,  shall  have  developed  an  average  loss 
ratio,  in  accordance  with  the  experience  of  the  commission  in  the  administra- 
tion of  the  law  as  shown  by  the  accounts  kept  as  provided  herein ; 

3.  If  any  such  accounting  show  an  aggregate  balance  (deemed  by  the 
commission  to  be  safely  and  properly  divisible)  remaining  to  the  credit  of 
any  class  of  employment  or  industry,  after  the  amount  required  shall  have 
been  credited  to  the  surplus  and  reserve  funds  and  after  the  payment  of  all 
awards  for  injury  or  death  lawfully  chargeable  against  the  same,  the  com- 
mission may  in  its  discretion  credit  to  each  individual  member  of  such  group, 
who  shall  have  been  a  subscriber  to  the  state  insurance  fund  for  a  period 
of  six  months  or  more  prior  to  the  time  of  such  readjustment,  and  whose 
premium  or  premiums  exceed  the  amount  of  the  disbursements  from  the 
fund  on  account  of  injuries  or  death  of  his  employees  during  such  period, 
on  the  instalment  or  instalments  of  premiums  next  due  from  him  such  pro- 
portion of  such  balance  as  the  amount  of  his  prior  paid  premiums  sustains 
to  the  whole  amount  of  such  premiums  paid  by  the  group  to  which  he  belongs 
since  the  last  readjustment  of  rates.  In  the  event  that  any  member  of  the 
group  who  has  heretofore  or  shall  hereafter  withdraw  would  have  become 
entitled  to  such  dividend  if  he  had  remained  in  the  fund  the  commission  is 
empowered  to  pay  the  amount  of  the  dividend  to  such  employer. 

4.  If  the  amount  of  premiums  collected  from  any  employer  at  the  be- 
ginning of  any  period  of  six  months  is  ascertained  and  calculated  by  using 
the  estimated  expenditure  of  wages  for  the  period  of  time  covered  by  such 
premium  payment  as  a  basis,  an  adjustment  of  the  amount  of  such  premium 
shall  be  made  at  the  end  of  such  six  months,  and  the  actual  amount  of  such 
premium  shall  be  determined  in  accordance  with  the  amount  of  the  actual 
expenditure  of  wages  for  such  period;  and,  if  such  wage  expenditure  for 
such  period  is  less  than  the  amount  on  which  such  estimated  premium  was 
collected,  such  employer  shall  be  entitled  to  receive  a  refund  from  the  state 
insurance  fund  of  the  difference  between  the  amount  so  paid  by  him  and  the 
amount  so  found  to  be  actually  due,  or  to  have  the  amount  of  such  difference 
credited  on  succeeding  premium  payments,  at  his  option;  and  if  such  actual 
premium,  when  so  ascertained,  exceeds  in  amount  a  premium  so  paid  by  such 
employer  at  the  beginning  of  such  six  months,  such  employer  shall  immediately 
upon  being  advised  of  the  true  amount  of  such  premium  due,  forthwith  pay 
to  the  treasurer  of  the  state  an  amount  equal  to  the  difference  between  the 
amount  actually  found  to  be  due  and  the  amount  paid  by  him  at  the  be- 
ginning of  such  six  months'  period. 

Sec.  98.  Time  of  payment  of  premiums.  Except  as  otherwise  provided 
in  this  chapter,  all  premiums  shall  be  paid  by  every  employer  into  the  state 
insurance  fund  on  or  before  July  first,  nineteen  hundred  and  fourteen,  and 
semi-annually  thereafter,  or  at  such  other  time  or  times  as  may  be  prescribed 
by  the  commission.  The  commission  shall  mail  a  receipt  for  the  same  to  the 
employer  and  place  the  same  to  the  credit  of  the  state  insurance  fund  in 
the  custody  of  the  state  treasurer. 

Sec.  99.  Action  for  collection  in  case  of  default.  If  an  employer  shall 
default  in  any  payment  required  to  be  made  by  him  to  the  state  insurance 
fund,  the  amount  due  from  him  shall  be  collected  by  civil  action  against  him 
in  the  name  of  the  people  of  the  state  of  New  York,  and  it  shall  be  the  duty 


—  47  — 

of  the  commission  on  the  first  Monday  of  each  month  after  July  first,  nine- 
teen hundred  and  fourteen,  to  certify  to  the  attorney-general  of  the  state 
the  names  and  residences,  or  places  of  business,  of  all  employers  known  to 
the  commission  to  be  in  default  for  such  payment  or  payments  for  a  longer 
period  than  five  days  and  the  amount  due  from  such  employer,  and  it  shall 
then  be  the  duty  of  the  attorney-general  forthwith  to  bring  or  cause  to  be 
brought  against  each  such  employer  a  civil  action  in  the  proper  court  for 
the  collection  of  such  amount  so  due,  and  the  same  when  collected,  shall  be 
paid  into  the  state  insurance  fund,  and  such  employer's  compliance  with 
the  provisions  of  this  chapter  requiring  payments  to  be  made  to  the  state 
insurance  fund  shall  date  from  the  time  of  the  payment  of  said  money  so 
collected  as  aforesaid  to  the  state  treasurer  for  credit  to  the  state  insurance 
fund. 

*Sec.  100.  [As  re-enacted  by  Chapter  622,  Laws  of  1916.]  Withdrawal 
from  fund.  Any  employer  may,  upon  complying  with  subdivision  two  or 
three  of  section  fifty  of  this  chapter,  withdraw  from  the  fund  by  turning 
in  his  insurance  contract  for  cancellation,  provided  he  is  not  in  arrears  for 
premiums  due  the  fund  and  has  given  to  the  commission  written  notice  of 
his  intention  to  withdraw  within  thirty  days  before  the  expiration  of  the 
period  for  which  he  has  elected  to  insure  in  the  fund;  provided  that  in  case 
any  employer  so  withdraws,  his  liability  to  assessments  shall,  notwithstanding 
such  withdrawal,  continue  for  one  year  after  the  date  of  such  withdrawal 
as  against  all  liabilities  for  such  compensation  accruing  prior  to  such 
withdrawal. 

Sec.  101.  Audit  of  payrolls.  Every  employer  who  is  insured  in  the 
state  insurance  fund  shall  keep  a  true  and  accurate  record  of  the  number 
of  his  employees  and  the  wages  paid  by  him,  and  shall  furnish  to  the  com- 
mission, upon  demand,  a  sworn  statement  of  the  same.  Such  record  shall  be 
open  to  inspection  at  any  time  and  as  often  as  the  commission  shall  require 
to  verify  the  number  of  employees  and  the  amount  of  the  payroll. 

Sec.  102.  Falsification  of  payroll.  An  employer  who  shall  wilfully  mis- 
represent the  amount  of  the  payroll  upon  which  the  premiums  chargeable 
by  the  state  insurance  fund  is  to  be  based  shall  be  liable  to  the  state  in  ten 
times  the  amount  of  the  difference  between  the  premiums  paid  and  the  amount 
the  employer  should  have  paid  had  his  payroll  been  correctly  computed; 
and  the  liability  to  the  state  under  this  section  shall  be  enforced  in  a  civil 
action  in  the  name  of  the  state  insurance  fund,  and  any  amount  so  collected 
shall  become  a  part  of  such  fund. 

Sec.  103.  Wilful  misrepresentation.  Any  person  who  wilfully  misrepre- 
sents any  fact  in  order  to  obtain  insurance  in  the  state  insurance  fund  at 
less  than  the  proper  rate  for  such  insurance,  or  in  order  to  obtain  payment 
out  of  such  fund,  shall  be  guilty  of  a  misdemeanor. 

Sec.  104.  Inspections.  The  commission  shall  have  the  right  to  inspect 
the  plants  and  establishments  of  employers  insured  in  the  state  insurance 
fund;  and  the  inspectors  designated  by  the  commission  shall  have  free  access 
to  such  premises  during  regular  working  hours. 

Sec.  105.  Disclosures  prohibited.  Information  acquired  by  the  commis- 
sion or  its  ofl&cers  or  employees  from  employers  or  employees  pursuant  to 
this  chapter  shall  not  be  opened  to  public  inspection,  and  any  officer  or 
employee  of  the  commission  who,  without  authority  of  the  commission  or 
pursuant  to  its  rules  or  as  otherwise  required  by  law  shall  disclose  the  same 
shall  be  guilty  of  a  misdemeanor. 


*Re-enacted  without  change. 


—  48  — 

Sec.  106.  [Added  by  Chapter  622,  Laws  of  1916.]  Reports  of  state 
insurance  fund;  examination  by  insurance  department.  The  commission  shall 
make  reports  to  the  superintendent  of  insurance  concerning  the  state  insur- 
ance fund  at  the  same  times  and  in  the  same  manner  as  is  required  from 
mutual  employers'  liability  and  workmen's  compensation  corporations  by  sec- 
tion one  hundred  and  ninety-two  of  the  insurance  law,  and  the  superintendent 
of  insurance  may  examine  into  the  condition  of  such  state  isurance  fund  at 
any  time,  either  personally  or  by  any  duly  authorized  examiner  appointed 
by  him,  for  the  purpose  of  determining  the  condition  of  the  investments 
and  the  adequacy  of  the  reserves  of  such  fund. 

ARTICLE  6 

Miscellaneous  Provisions 

Section  110.  Penalties  applicable  to  expense  of  commission. 

111.  Record  and  report  of  injuries  by  employers. 

112.  Information  to  be  furnished  by  employer. 

113.  Inspection  of  records  of  employers. 

114.  Interstate  commerce. 

115.  Penalties  for  false  representations. 

116.  Limitation  of  time. 

117.  Duties  of  commissioner  of  labor. 

118.  Unconstitutional  provisions. 

119.  Actions  or  causes  of  action  pending. 

Sec.  110.  Penalties  applicable  to  expenses  of  commission.  All  penalties 
imposed  by  this  chapter  shall  be  applicable  to  the  expenses  of  the  commission. 
When  collected  by  the  commission  such  penalties  shall  be  paid  into  the  state 
treasury  and  be  thereafter  appropriated  by  the  legislature  for  the  purposes 
prescribed  by  this  section. 

Sec.  111.  Record  and  report  of  injuries  by  employers.  Every  employer 
shall  keep  a  record  of  all  injuries,  fatal  or  otherwise,  received  by  his  em- 
ployees in  the  course  of  their  employment.  Within  ten  days  after  the  occur- 
rence of  an  accident  resulting  in  personal  injury  a  report  thereof  shall  be 
made  in  writing  by  the  employer  to  the  commission  upon  blanks  to  be  pro- 
cured from  the  commission  for  that  purpose.  Such  report  shall  state  the 
name  and  nature  of  the  business  of  the  employer,  the  location  of  his  estab- 
lishment or  place  of  work,  the  name,  address  and  occupation  of  the  injured 
employee,  the  time,  nature  and  cause  of  the  injury  and  such  other  informa- 
tion as  may  be  required  by  the  commission.  An  employer  who  refuses  or 
neglects  to  make  a  report  as  required  by  this  section  shall  be  guilty  of  a 
misdemeanor,  punishable  by  a  fine  of  not  more  than  five  hundred  dollars. 

Sec.  112.  Information  to  be  furnished  by  employer.  Every  employer 
shall  furnish  the  commission,  upon  request,  any  information  required  by  it 
to  carry  out  the  provisions  of  this  chapter.  The  commission,  a  commissioner, 
deputy  commissioner,  or  any  person  deputized  by  the  commission  for  that 
purpose,  may  examine  under  oath  any  employer,  officer,  agent  or  employee. 
An  employer  or  an  employee  receiving  from  the  commission  a  blank  with 
directions  to  file  the  same  shall  cause  the  same  to  be  properly  filled  out  so 
as  to  answer  fully  and  correctly  all  questions  therein,  or  if  unable  to  do  so, 
shall  give  good  and  sufficient  reasons  for  such  failure.  Answers  to  such 
questions  shall  be  verified  under  oath  and  returned  to  the  commission  within 
the  period  fixed  by  the  commission  therefor. 

Sec.  113.  Inspection  of  records  of  employers.  All  books,  records  and 
payrolls  of  the  employers  showing  or  reflecting  in  any  way  upon  the  amount 


—  49  — 

of  wage  expenditures  of  such  employers  shall  always  be  open  for  inspection 
by  the  commission  or  any  of  its  authorized  auditors,  accountants  or  inspectors 
for  the  purpose  of  ascertaining  the  correctness  of  the  wage  expenditure  and 
number  of  men  employed  and  such  other  information  as  may  be  necessary 
for  the  uses  and  purposes  of  the  commission  in  the  administration  of  this 
chapter. 

Sec.  114.  Interstate  commerce.  The  provisions  of  this  chapter  shall 
apply  to  employers  and  employees  engaged  in  intrastate,  and  also  in  inter- 
state or  foreign  commerce,  for  whom  a  rule  of  liability  jor  method  of  com- 
pensation has  been  or  may  be  established  by  the  congress  of  the  United  States, 
only  to  the  extent  that  their  mutual  connection  with  intrastate  work  may  and 
shall  be  clearly  separable  and  distinguishable  from  interstate  or  foreign 
commerce,  except  that  such  employer  and  his  employees  working  only  in 
this  state  may,  subject  to  the  approval  and  in  the  manner  provided  by  the 
commission  and  so  far  as  not  forbidden  by  any  act  of  congress,  accept  and 
become  bound  by  the  provisions  of  this  chapter  in  like  manner  and  with  the 
same  effect  in  all  respects  as  provided  herein  for  other  employers  and  their 
employees. 

Sec.  115.  Penalties  for  false  representation.  If  for  the  purpose  of  ob- 
taining any  benefit  or  payment  under  the  provisions  of  this  chapter,  either 
for  himself  or  any  other  person,  any  person  wilfully  makes  a  false  statement 
or  representation,  he  shall  be  guilty  of  a  misdemeanor. 

Sec.  116.  Limitation  of  time.  No  limitation  of  time  provided  in  this 
chapter  shall  run  as  against  any  person  who  is  mentally  incompetent  or  a 
minor  dependent  so  long  as  he  has  no  committee,  guardian  or  next  friend. 

Sec.  IIT.  Duties  of  commissioner  of  labor.  The  commissioner  of  labor 
shall  render  to  the  commission  any  proper  aid  and  assistance  by  the  depart- 
ment of  labor  as  in  his  judgment  does  not  interfere  with  the  proper  conduct 
of   such  department. 

Sec.  118.  Unconstitutional  provisions.  If  any  section  or  provision  of 
this  chapter  be  decided  by  the  courts  to  be  unconstitutional  or  invalid,  the 
same  shall  not  affect  the  validity  of  the  chapter  as  a  whole  or  any  part 
thereof  other  than  the  part  so  decided  to  be  unconstitutional  or  invalid. 

Sec.  119.  Actions  or  causes  of  action  pending.  This  act  shall  not  affect 
any  action  pending  or  cause  of  action  existing  or  which  accrued  prior  to 
July  first,  nineteen  hundred  and  fourteen. 

ARTICLE  7. 

Laws  Repealed;  When  to  Take  Effect 

Section  130.     Laws  repealed. 

131.     When  to  take  effect. 

Sec.  130.  Laws  repealed.  Article  fourteen-a  and  sections  two  himdred 
and  fifteen  to  two  hundred  and  nineteen-g,  both  inclusive,  of  chapter  thirty- 
six  of  the  laws  of  nineteen  hundred  and  nine,  as  amended  by  chapter  six 
hundred  and  seventy-four  of  the  laws  of  nineteen  hundred  and  ten,  arc 
hereby  repealed. 

Sec.  131.  When  to  take  effect.  This  chapter  shall  take  effect  immedi- 
ately, provided  that  the  application  of  this  chapter  as  between  employers  and 
employees  and  the  payment  of  compensation  for  injuries  to  employees  or 
their  dependents,  in  case  of  death,  shall  take  effect  July  first,  nineteen 
hundred  and  fourteen,  but  payments  into  the  state  insurance  fund  may  be 
made  prior  to  July  first,  nineteen  hundred  and  fourteen. 


—  50  — 
CHAPTER  674,  LAWS  OF  1915 

AN  ACT 

TO  AMEND  THE  LABOR  LAW,  ESTABLISHING  THE  STATE  IN- 
DUSTRIAL COMMISSION,  DEFINING  ITS  POWERS  AND 
DUTIES,  TRANSFERRING  THERETO  THE  POWERS  AND 
DUTIES  OF  THE  WORKMEN'S  COMPENSATION  COMMISSION 
AND  ABOLISHING  THE  OFFICES  OF  COMMISSIONER  OF 
LABOR  AND  DEPUTY  COMMISSIONERS  OF  LABOR,  THE  IN- 
DUSTRIAL BOARD  AND  THE  WORKMEN'S  COMPENSATION 
COMMISSION. 

Became  a  law  May  twenty-two,  nineteen  hundred  and  fifteen,  with  the 
approval  of  the  Governor.     Passed,  three-fifths  being  present. 

The  People  of  the  State  of  New  York,  represented  in  Senate  and  Assembly, 
do  enact  as  follows: 

Section  1.  Article  three  and  article  three-a  of  chapter  thirty-six  of  the 
laws  of  nineteen  hundred  and  nine,  entitled  "An  act  relating  to  labor,  con- 
stituting chapter  thirty-one  of  the  consolidated  laws"  as  amended  by  chapter 
five  hundred  and  fourteen  of  the  laws  of  nineteen  hundred  and  ten,  chapters 
five  hundred  and  sixty-five  and  seven  hundred  and  twenty-nine  of  the  laws 
of  nineteen  hundred  and  eleven,  chapter  three  hundred  and  eighty-two  of 
the  laws  of  nineteen  hundred  and  twelve,  chapter  one  hundred  and  forty-five 
of  the  laws  of  nineteen  hundred  and  thirteen,  and  chapter  one  hundred  and 
eiglity-one  of  the  laws  of  nineteen  hundred  and  fourteen,  are  hereby  amended 
to  read  as  follows: 

ARTICLE  3 

Department  of  Labor 

Section  40.  Industrial   conunission   created. 

40-a.  Industrial  council. 

41.  Deputy  commissioners. 

42.  Bureaus. 

43.  Powers. 

44.  Expenses. 

45.  Distribution  of  resi)onsibility. 

46.  Reports. 

47.  Old  records. 

48.  Counsel. 

49.  Secretary. 

49-a.   Officers  and  employees, 

50.  Meetings. 

51.  Investigations. 

51-a.  Rules    and   regulations. 

52.  Industrial  code;   procedure. 
52-a.  Review  by  commission. 
52-b.  Review  by  court. 

52-c.   Ivimited  review  of  provisions  of  chajiter  and  of  rules,  regulations 

and  orders. 
52-d.   Variations. 
52-e.   Protection  of  employees. 
Sec.  40.     Industrial    commission    created.      'I  here    shall   be    a    department 
of  labor,  the  head  of  which  shall   be  the  industrial   commission.     The   com- 


—  51  — 

mission  shall  consist  of  five  commissioners  appointed  by  the  governor  by  and 
with  the  advice  and  consent  of  the  senate,  one  of  whom  shall  be  designated 
by  the  governor  as  chairman.  Upon  the  appointment  of  a  successor  to  the 
chairman  the  governor  shall  designate  such  successor  or  any  member  of  the 
commission  as  chairman  thereof.  The  term  of  office  of  each  commissioner 
shall  be  six  years,  except  that  the  term  of  the  commissioners  first  appointed 
shall  expire,  one  on  January  first,  nineteen  hundred  and  seventeen,  one  on 
January  first,  ninteen  hundred  and  eighteen,  one  on  Jauary  first,  nineteen 
hundred  and  nineteen,  one  on  January  first,  nineteen  hundred  and  twenty 
and  one  on  January  first,  nineteen  hundred  and  twenty-one.  Their  successors 
shall  be  appointed  for  full  terms  of  six  years  from  the  expiration  of  the 
terms  of  their  predecessors  in  office.  If  a  vacancy  occurs  otherwise  than  by 
ex]Mration  of  a  term,  it  shall  be  filled  by  appointment  for  the  unexpired  term. 
Each  commissioner  shall  receive  an  annual  salary  of  eight  thousand  dollars, 
and  shall  devote  his  entire  time  to  the  duties  of  his  office.  Not  more  than 
three  commissioners  shall  be  members  of  the  same  political  party. 

The  governor  may  remove  a  commissioner  for  inefficiency,  neglect  of 
duty  or  misconduct  in  office,  giving  him  a  copy  of  the  charges  and  an  oppor- 
tunity of  being  publicly  heard  in  person  or  by  counsel  on  not  less  than  ten 
days'  notice.  If  the  commissioner  be  removed,  the  governor  shall  file  in  the 
office  of  the  secretary  of  state  a  complete  record  of  his  proceedings  with 
regard  to  such  removal  and  his  findings  thereon. 

The  commission  may  adopt  a  seal  and  require  that  it  be  used  for  the 
authentication  of  the  commission's  orders  and  proceedings  and  for  such  other 
})urposes  as  the  commission  may  prescribe.  The  court  shall  take  judicial 
notice  of  such  seal  and  of  the  signatures  of  the  chairman  and  secretary  of 
the  commission. 

Sec.  40-a.  Industrial  council.  (1)  To  advise  the  commission  there 
shall  be  an  industrial  council  composed  of  ten  members  appointed  by  the 
governor.  Five  members  of  the  council  shall  be  persons  known  to  represent 
the  interests  of  employees  and  five  shall  be  persons  known  to  represent  the 
interests  of  employers.  The  governor  may  remove  any  member  of  the  council 
when  such  member  ceases  to  represent  the  interests  in  whose  behalf  he  was 
appointed. 

(2)  The  council  shall  organize  by  electing  as  chairman  any  person  not 
a  member  of  the  council.  The  chairman  shall  preside  at  meetings  of  the 
council  and  may  take  part  in  its  deliberations,  but  shall  have  no  vote.  The 
secretary  of  the  commission  shall  act  as  secretary  to  the  council  and  the 
commission  shall  detail  from  time  to  time  to  the  assistance  of  the  council 
such  employees  as  may  be  necessary. 

(3)  No  compensation  or  expenses  shall  be  paid  from  the  treasury  to 
the  members  of  the  council. 

(4)  The  council  shall:  (a)  consider  all  matters  submitted  to  it  by  the 
industrial  commission  and  advise  the  commission  with  respect  thereto;  (b) 
co-operate  with  the  civil  service  commission  in  conducting  examinations  and 
in  preparing  lists  of  eligibles  for  positions,  the  duties  of  which  require  special 
knowledge  or  training,  and  advise  the  industrial  commission  in  the  selection 
and  appointment  of  employees  to  such  positions.  The  council  shall  adopt 
rules  and  regulations  to  govern  its  own  proceedings.  The  secretary  shall 
keep  a  complete  record  of  all  its  proceedings  which  shall  show  the  names 
of  the  members  present  at  each  meeting,  and  every  matter  submitted  to  the 
council  by  the  commission  and  the  action  of  the  council  thereon.  The  record 
shall   be   filed   in   the   commission's   office.     All   records   and   other   documents 


—  52  — 

of  the  commission  shall  be  i^jibject  to  inspection  by  the  members  of  the  council. 

Sec.  41.  Deputy  commissioners.  The  commission  shall  appoint  and  may 
remove  a  first  deputy  commissioner  who  shall  be  in  charge  of  the  bureau 
of  inspection;  a  second  deputy  commissioner  who  shall  be  in  charge  of  the 
workmen's  compensation  bureau;  a  third  deputy  commissioner  who  shall  be 
in  charge  of  the  bureau  of  mediation  and  arbitration. 

The  annual  salaries  of  the  deputies  shall  be  as  follows:  first  deputy, 
six  thousand  dollars;  second  deputy,  six  thousand  dollars;  third  deputy, 
five  thousand  dollars. 

Sec.  42.  Bureaus.  The  department  of  labor  shall  have  the  following 
bureaus:  inspection;  statistics  and  information;  mediation  and  arbitration; 
industries  and  immigration;  employment;  workmen's  compensation;  and  such 
other  bureaus  as  the  commission  may  deem  necessary.  Each  bureau  and 
division  of  the  department  and  the  persons  in  charge  thereof  shall  be  subject 
to  the  supervision  and  direction  of  the  commission  and  of  any  commissioner 
duly  designated  to  supervise  the  work  of  such  bureau,  and  in  addition  to 
their  respective  duties  as  prescribed  by  this  chapter  shall  perform  such  other 
duties  as  may  be  assigned  to  them  by  the  commission. 

Sec.  43.  Powers.  1.  The  commissioners,  deputy  commissioners,  secre- 
tary and  other  oflficers  and  assistants  of  the  commission  may  administer  oaths 
and  take  affidavits  in  matters  relating  to  the  powers  and  duties  of  the 
commission. 

2.  No  person  shall  interfere  with,  obstruct  or  hinder  by  force  or  other- 
wise the  commissioners,  deputy  commissioners,  or  any  officer,  agent  or  em- 
ployee of  the  department  of  labor  while  in  the  performance  of  their  duties, 
or  refuse  to  properly  answer  questions  asked  by  such  officers  or  employees 
pertaining  to  the  provisions  of  this  chapter,  or  refuse  them  admittance  to 
any  place  which  is  aifected  by  the  provisions  of  this  chapter. 

3.  All  notices,  orders  and  directions  of  any  officer,  agent  or  employee 
of  the  department  of  labor  other  than  the  commission  given  in  accordance 
with  this  chapter  are  subject  to  the  approval  of  the  commission  and  may 
be  performed  or  given  by  and  in  the  name  of  the  commission  and  by  any 
officer  or  employee  of  the  department  thereunto  duly  authorized  by  the 
commission  in  its  name. 

4.  The  commission  may  procure  and  cause  to  be  used  badges  for  the 
officers,  agents  and  employees  in  the  department  of  labor  while  in  the  per- 
formance of  their  duties. 

Sec.  44.  Expenses.  All  necessary  expenses  incurred  by  the  commission 
in  the  discharge  of  its  duties  shall  be  paid  by  the  state  treasurer  upon  the 
warrant  of  the  comptroller  issued  upon  proper  vouchers  therefor.  The 
reasonable  and  necessary  traveling  and  other  expenses  of  the  deputy  com- 
missioners, the  secretary  of  the  commission,  inspectors,  investigators  and 
other  officers,  assistants,  agents  and  employees  of  the  commission  while 
engaged  in  the  performance  of  their  duties  shall  be  paid  in  like  manner 
upon  vouchers  approved  by  the  commission  and  audited  by  the  comptroller. 

Sec.  45.  Distribution  of  responsibility.  At  the  first  meeting  of  the 
commission  after  its  appointment,  and  at  least  once  in  each  year  thereafter, 
the  commission  shall  by  resolution  duly  approved,  apportion  the  administra- 
tive work  involved  in  the  performance  of  its  duties  and  the  exercise  of  its 
powers  under  this  chapter  and  under  the  workmen's  compensation  law, 
among  the  members  of  the  commission  and  shall  designate  the  portion  of  such 
work  which  each  of  its  members,  under  the  direction  and  control  of  the 
commission,  shall  supervise  and  be  responsible  for. 


—  53  — 

The  commission  shall  submit  all  questions  of  general  policy  arising  in 
the  exercise  of  its  powers  or  the  performance  of  its  duties  under  the  pro- 
visions of  this  chapter  or  under  the  provisions  of  the  workmen's  compensa- 
tion law  to  the  industrial  council  or  its  members  for  their  consideration  and 
advice. 

Sec.  46.  Reports.  The  commission  shall  report  annually  to  the  legis- 
lature and  shall  include  in  his  annual  report  or  make  separately  in  each 
year  a  report  of  the  operation  of  each  bureau  in  the  department. 

Sec.  47.  Old  records.  All  statistics  furnished  to  and  all  complaints, 
reports  and  other  documentary  matter  received  by  the  commission  pursuant 
to  this  chapter  or  any  act  repealed  or  superseded  thereby  may  be  destroyed 
by  such  commission  after  the  expiration  of  six  years  from  the  time  of  the 
receipt  thereof. 

Sec.  48.  Counsel.  The  commission  may  appoint  and  at  pleasure  remove 
as  counsel  to  the  commission  an  attorney  and  counsellor  at  law  of  the  state 
of  New  York  who  shall  represent  the  department  of  labor  or  the  commission 
and  take  charge  of  and  assist  in  the  prosecution  of  actions  and  proceedings 
brought  by  or  on  behalf  of  the  commission  or  the  department  and  who  shall 
generally  act  as  legal  advisor  to  the  commission.  Such  counsel  shall  receive 
an  annual  salary  of  six  thousand  dollars.  The  commission  may  appoint  and 
at  pleasure  remove  not  exceeding  three  attorneys  and  counsellors  at  law 
to  assist  the  counsel  in  the  performance  of  his  duties  and  may  fix  their  com- 
pensation within  the  limits  of  the  annual  appropriation  provided  therefor. 

Sec.  49.  Secretary.  The  commission  shall  appoint  and  may  remove  a 
secretary,  at  an  annual  salary  of  six  thousand  dollars.  The  secretary  shall 
perform  such  duties  in  connection  with  the  meetings  of  the  commission  and 
its  investigations,  hearings  and  the  preparation  of  rules  and  regvdations  under 
the  provisions  of  this  chapter  as  the  commission  may  prescribe;  and  shall 
perform  the  duties  of  secretary  of  the  workmen's  compensation  commission, 
as  prescribed  by  the  workmen's  compensation  law. 

Sec.  49-a.  Ofl&cers  and  employees.  The  commission  may  appoint  such 
additional  deputy  commissioners,  and  such  officers,  statisticians,  actuaries, 
accountants,  physicians,  experts  and  other  assistants  and  employees  as  may 
be  necessary  for  the  exercise  of  its  powers  and  the  performance  of  its  duties 
under  the  provisions  of  this  chapter  and  of  the  workmen's  compensation  law, 
all  of  whom  shall  be  in  either  the  competitive  or  the  non-competitive  class 
of  the  classified  civil  service;  and  the  commission  shall  prescribe  their  duties 
and  fix  their  salaries  which  shall  not  exceed  in  the  aggregate  the  amount 
annually  appropriated  by  the  legislature  for  that  purpose. 

Sec.  50.  Meetings.  The  commission  shall  hold  stated  meetings,  at  least  once 
a  month  at  the  office  of  the  department  in  Albany  or  in  New  York  city, 
and  shall  hold  other  meetings  when  and  where  called  by  the  chairman  or  two 
members  of  the  commission.  All  meetings  of  the  commission  shall  be  open 
to  the  public.  The  commission  shall  keep  records  of  its  investigations  and 
other  official  actions,  and  minutes  of  its  proceedings  showing  the  vote  of 
each  member  upon  every  question. 

Sec.  51.  Investigations.  The  commission  shall  have  power  to  make 
investigations  concerning  and  report  upon  the  conditions  of  labor  generally 
and  upon  all  matters  relating  to  the  enforcement  and  effect  of  the  provisions 
of  this  chapter  and  of  the  rules  and  regulations  of  the  commission.  Each 
member  of  the  commission  and  the  secretary  shall  have  power  to  administer 
oaths  and  take  affidavits  and  to  make  personal  inspections  of  all  places  to 
which  this  chapter   applies.     The  commission  shall  have  power  to  subpoena 


—  st- 
andi require  the  attendance  of  witnesses  and  the  production  of  books  and 
papers  pertinent  to  the  investigations  and  inquiries  hereby  authorized,  and 
to  examine  them  in  relation  to  any  matter  it  has  power  to  investigate,  and 
to  issue  commissions  for  the  examination  of  witnesses  who  are  out  of  the 
state  or  unable  to  attend  before  the  commission,  or  excused  from  attendance. 
Sec.  51-a.  Rules  and  regulations.  (1)  The  commission  shall  have  power 
to  make,  amend  and  repeal  rules  and  regulations  for  carrying  into  effect 
the  provisions  of  this  chapter,  applying  such  provisions  to  specific  conditions 
and  prescribing  means,  methods  and  practices  to  effectuate  such  provisions. 

(2)  The  commission  shall  have  power  to  make,  amend  and  repeal  rules 
and  regulations  for  proper  sanitation  in  all  places  to  which  this  chapter 
applies,  and  for  guarding  against  and  minimizing  fire  hazards,  personal  in- 
juries and  diseases  in  all  places  to  which  this  chapter  applies,  with  respect  to 

a.  The  construction,  alteration,  equipment  and  maintenance  of  all  such 
places,  including  the  conversion  of  structures  into  factories,  factory  buildings 
and  mercantile  establishments; 

b.  The  arrangement  and  guarding  of  machinery  and  the  storing  and 
keeping  of  property  and  articles; 

c.  The  places  where  and  the  methods  and  operation  by  which  trades 
and  occupations  may  be  conducted,  and  the  conduct  of  employers,  employees 
and  other  persons; 

It  being  the  policy  and  intent  of  this  chapter  that  all  places  to  which 
it  applies  shall  be  so  constructed,  equipped,  arranged,  operated  and  con- 
ducted in  all  respects  as  to  provide  reasonable  and  adequate  protection  to 
the  lives,  health  and  safety  of  all  persons  employed  therein,  and  frequenting 
the  same,  and  that  the  commission  shall  from  time  to  time  make  such  rules 
and  regulations  as  will  effectuate  such  policy  and  intent. 

(3)  Whenever  the  commission  finds  that  any  industry,  trade,  occupation 
or  })r()cess  involves  such  elements  of  danger  to  the  lives,  health  or  safety 
of  persons  employed  therein  as  to  require  special  regulation  for  the  pro- 
tection of  such  persons,  the  commission  shall  have  power  to  make  special 
rules  and  regulations  to  guard  against  such  elements  of  danger  by  establish- 
ing requirements  as  to  temperature,  humidity,  the  removal  of  dusts,  gases 
or  fumes  and  requiring  licenses  to  be  applied  for  and  issued  by  the  com- 
mission as  a  condition  of  carrying  on  any  such  industry,  trade,  occupation 
or  i)rocess  and  requiring  medical  inspection  and  supervision  of  persons 
employed  and  applying  for  employment,  and  by  other  appropriate  means. 

(4)  The  rules  and  regulations  may  be  limited  in  their  application  to 
certain  classes  of  establishments,  places  of  employment,  machines,  apparatus, 
articles,  processes,  industries,  trades  or  occupations  or  may  apply  only  to 
those  to  be  constructed,  established,  installed  or  provided  in  the  future. 

(5)  The  rules  and  regulations  of  the  commission  shall  have  the  force 
and  effect  of  law  and  shall  be  enforced  in  the  same  manner  as  the  provisions 
of  this  chapter. 

(6)  No  provision  of  this  chapter  specifically  conferring  power  on  the 
commission  to  make  rules  and  regulations  shall  limit  the  power  conferred 
by  this  section. 

Sec.  52.  Industrial  code;  procedure.  The  rules  and  regulations  of  the 
commission  shall  constitute  the  industrial  code.  At  least  three  affirmative 
votes  shall  be  necessary  for  the  adoption,  amendment  or  repeal  of  any  rule 
or  regulation.  Before  any  rule  or  regulation  is  adopted,  amended  or  repealed, 
there  shall  be  a  public  hearing  tliereon,  notice  of  which  shall  be  published 
at  least  once,  not  less  than  ten  days  prior  thereto,  in  such   newspapers   as 


—  65  — 

the  commission  may  prescribe,  and  in  the  City  Record  in  the  city  of  New  York. 
The  commission  may  appoint  committees  composed  of  employers,  employees 
and  experts  to  assist  it  in  framing  rules  and  regulations  and  shall  submit  all 
proposed  rules  and  regulations  to  the  industrial  council  or  the  members 
thereof  for  their  consideration  and  advice.  Every  rule  and  regulation  adopted, 
every  amendment  or  repeal  thereof  and  every  act  of  the  commission  shall 
be  promptly  published  in  the  bulletins  of  the  department  and  in  the  City 
Record  in  the  city  of  New  York.  The  rules  and  regulations  and  all  amend- 
ments and  repeals  thereof  shall,  unless  otherwise  prescribed  by  the  com- 
mission, take  effect  twenty  days  after  the  first  publication  thereof,  and  every 
rule  and  regulation  and  every  amendment  or  repeal  thereof,  shall  be  certified 
by  the  secretary  of  the  commission  and  filed  with  the  secretary  of  state. 

Sec.  52-a.  Review  by  commission.  1.  Any  person  in  interest  may  peti- 
tion the  commission  for  a  review  of  the  validity  or  reasonableness  of  any 
rule,  regulation  or  order  made  by  the  commission  or  otherwise  under  the 
provisions  of  this  chapter. 

2.  The  petition  shall  be  verified  and  filed  with  the  commission  and  shall 
state  in  full  detail:  (a)  The  rule,  regulation  or  order  upon  which  the 
hearing  is  desired;  in  what  respects  it  is  claimed  to  be  invalid  or  unrea- 
sonable;  (c)     the  issues  to  be  considered  by  the  commission  on  the  hearing. 

The  commission  may  join  in  one  proceeding  all  petitioners  alleging  in- 
validity or  unreasonableness  of  the  same  or  substantially  similar  rules,  regu- 
lations or  orders.  The  petitioner  shall  be  deemed  to  have  waived  all  objec- 
tions to  any  irregularities  or  illegalities  in  the  rule,  regulation  or  order  upon 
which  a  hearing  is  sought  other  than  those  set  forth  in  the  petition. 

3.  Upon  receipt  of  the  petition,  the  commission  shall,  if  necessary  to 
determine  the  issues  raised,  order  a  hearing,  or  if  the  issues  have  been  ade- 
quately considered  in  a  prior  proceeding  under  this  section  or  otherwise, 
the  commission  may,  without  hearing,  confirm  its  previous  determination. 
Notice  of  the  time  and  place  of  hearing,  which  shall  be  open  to  the  public, 
shall  be  given  to  the  petitioner  and  to  such  other  persons  as  the  commission 
may  find  directly  interested  in  the  issues  raised  by  the  petitioner. 

4.  If,  upon  such  hearing,  the  commission  finds  that  the  rule,  regulation, 
or  order  complained  of  is  invalid  or  unreasonable  it  shall  revoke  it  or  sub- 
stitute therefor  a  new  or  amended  one.  If  the  substituted  rule,  regulation 
or  order  involves  a  substantial  amendment  af  the  original  one,  the  parties 
may,  by  new  petition,  bring  before  the  commission  all  objections  to  its  validity 
and  reasonableness  and  no  action  under  the  provisions  of  section  fifty-two-b 
shall  meanwhile  be  entertained  by  the  court. 

5.  The  decision  of  the  commission  shall  be  final  unless  within  thirty 
days  after  its  issuance  one  of  the  parties  to  the  proceeding  before  the  com- 
mission appeals  from  its  decision  by  bringing  an  action  as  provided  in  section 
fiftv-two-b. 

Sec.  52-b.  Review  by  court.  1.  Any  person  in  interest  may  bring  an 
action  in  the  supreme  court  against  the  commission  as  defendant,  to  de- 
termine the  validity  and  reasonableness  of  any  provision  of  this  chapter  or 
of  the  rules  and  regulations  made  in  pursuance  thereof  or  of  any  order 
directing  compliance  therewith,  provided  that  no  such  action  to  determine 
the  validity  or  reasonableness  of  any  rule,  regulation  or  order  shall  be  brought, 
except  as  an  appeal  from  the  determination  of  the  commission,  as  provided 
in  section  fifty-two-a. 

2.  If  the  action  is  an  appeal  from  a  determination  of  the  commission 
the  commission  shall  file  with  the  clerk  of  the  court  a  certified  copy  of  the 


—  56  — 

record  of  its  hearing  in  the  matter,  and  if  the  appeal  is  from  a  determina- 
tion of  the  commission  refusing  a  hearing  on  the  ground  that  the  issues 
have  been  determined  in  a  prior  proceeding,  the  commission  shall  also  file 
with  the  clerk  of  the  court  a  certified  copy  of  the  records  of  its  hearings 
in  the  prior  proceedings. 

3.  Such  action  shall  have  precedence  over  other  actions  in  the  same 
court  in  accordance  with  the  provisions  of  subdivision  one  of  section  seven 
hundred  and  ninety-one  of  the  code  of  civil  procedure. 

4.  The  court  shall  thereafter  try  the  issues  and  render  its  decision  based 
upon  the  record  of  the  commission's  hearings  as  well  as  the  evidence  sub- 
mitted in  the  action  before  it.  The  court  may  refer  any  issue  arising  in.  such 
action  to  the  commission  for  further  consideration.  At  any  time  during 
such  action  the  party  appealing  from  the  commission's  decision  shall  have 
the  right  to  apply,  without  notice,  to  the  court  for  an  order  directing  all 
questions  of  fact  arising  upon  one  or  more  specified  issues  to  be  tried  and 
determined  by  a  jury,  and  the  court  shall  thereupon  cause  these  questions 
to  be  distinctly  and  plainly  stated  for  trial  accordingly,  and  the  findings  of 
the  jury  upon  such  questions  so  stated  shall  be  conclusive  in  the  action. 
Appeals  from  the  supreme  court  to  the  appellate  division  of  the  supreme 
court  and  to  the  court  of  appeals  may  be  taken  in  such  cases  and  subject 
to  the  same  limitations  as  in  other  cases. 

Sec.  52-c.  Limited  review  of  provisions  of  chapter  and  of  rules,  regula- 
tions and  orders.  1.  Every  provision  of  this  chapter  and  of  the  rules  and 
regulations  made  in  pursuance  thereof,  and  every  order  directing  compliance 
therewith  shall  be  valid  and  in  full  force  and  effect  unless  declared  invalid 
in  a  proceeding  for  review  brought  under  the  provisions  of  section  fifty-two-a. 
Except  as  provided  in  section  fifty-two-b  no  court  shall  have  jurisdiction  to 
review,  reverse  or  annul  any  such  provision  or  order  or  to  enjoin,  restrain 
or  interfere  with  its  enforcement. 

2.  Every  such  provision  or  order  shall  in  a  prosecution  or  action  to 
impose  a  penalty  for  its  violation  be  deemed  valid  and  in  full  force  and 
effect,  unless  prior  to  the  commencement  of  the  prosecution  or  action  such 
provision  or  order  has  been  revoked,  or  modified  by  the  commission,  or 
annulled  by  a  court  having  jurisdiction  thereof,  in  proceedings  brought  under 
the  provisions  of  sections  fifty-two-a  or  fifty-two-b,  or  unless  such  proceedings 
are  pending  in  which  case  the  prosecution  or  action  shall  be  stayed  by  the 
court  and  abide  the  final  determination  thereof.  If  any  such  prosecution 
or  action  is  commenced  against  a  defendant  who  has  not  previously  been 
served  with  an  order  to  comply  with  such  provision,  or  who  has  been  served 
with  such  an  order  but  has  not  had  a  reasonable  opportunity  to  comply 
therewith,  and  if  within  five  days  the  defendant  commences  proceedings  under 
the  provisions  of  sections  fifty-two-a  or  fifty-two-b,  the  prosecution  or  action 
shall  be  stayed  as  if  such  proceedings  had  been  pending  at  the  time  it  was 
commenced. 

Sec.  52-d.  Variations.  If  in  the  opinion  of  the  commission  there  shall 
be  practical  difficulties  in  carrying  out  the  strict  letter  of  a  provision  of  this 
chapter  or  of  a  rule  or  regulation  adopted  by  the  commission  affecting  the 
construction  or  alteration  of  buildings  and  structural  changes  therein,  the 
installation  of  fixtures  and  apparatus  safeguarding  the  machinery  and  pre- 
vention of  accidents,  a  variation  from  or  modification  of  its  requirements  so 
that  the  spirit  of  the  provision  or  rule  or  regulation  shall  be  observed,  public 
safety  secured  and  substantial  justice  done,  may  be  permitted  by  the  com- 
mission as  provided  by  this  section.     The  person  affected  by  such  provision 


—  57  — 

or  rule  or  regulation  or  his  agent  may  petition  the  commission  for  one  or 
more  such  variations  or  modifications  stating  the  grounds  therefor.  The 
commission  shall  fix  a  day  within  a  reasonable  time  for  a  hearing  on  the 
petition  and  upon  the  hearing  the  petitioner  may  appear  in  person  or  by 
agent  or  attorney.  The  decision  of  the  commission  shall  be  rendered  promptly 
and  shall  be  final.  A  copy  of  the  petition  and  the  decision  shall  be  filed  by 
the  secretary  of  the  commission  in  his  office  and  if  the  petition  be  allowed 
wholly  or  in  part  a  certificate  stating  the  reason  for  such  allowance  shall 
be  filed  in  like  manner. 

Powers  conferred  upon  the  commission  by  this  section  shall  be  subject 
to  the  requirement  of  this  chapter  that  all  places  to  which  it  applies  shall 
be  so  constructed,  equipped,  arranged,  operated  and  conducted  in  all  respects 
as  to  provide  reasonable  and  adequate  protection  to  the  lives,  health  and 
safety  of  all  persons  employed  therein. 

Sec.  52-e.  Protection  of  emplo3^ees.  The  commission  shall  render  all 
aid  and  assistance  necessary  for  the  enforcement  of  any  claim  by  an  em- 
ployee against  his  employer  which  the  commission  finds  reasonable  and  just 
and  for  the  protection  of  employees  from  frauds,  extortions,  exploitation, 
or  other  improper  practices  on  the  part  of  any  person,  public  or  private; 
and  shall  investigate  such  cases  for  the  purpose  of  presenting  the  facts  to 
the  proper  authorities  and  of  inducing  action  thereon  by  the  various  agencies 
of  the  state  possessing  the  requisite  jurisdiction. 

Sec.  2.  Section  sixty-two  of  the  workmen's  compensation  law  is  hereby 
amended  to  read  as  follows: 

Sec.  62.  Expenses.  The  commission  may  make  the  necessary  expendi- 
ture to  obtain  statistical  and  other  information  to  establish  classifications 
of  employments  with  respect  to  hazards  and  risks.  The  expenses  of  the 
commission,  including  the  premiums  to  be  paid  by  the  state  treasurer  for 
the  bond  to  be  furnished  by  him,  shall  be  paid  out  of  the  state  treasury 
upon  vouchers  signed  by  at  least  two  commissioners. 

Sec.  3.  Offices  of  commisioner  and  deputy  commissioners  of  labor  abol- 
ished. On  and  after  the  appointment  and  qualification  of  the  members  of 
the  industrial  commission,  the  office  of  commissioner  of  labor  as  created  by 
section  forty  of  the  labor  law,  as  amended  by  chapter  seven  hundred  and 
twenty-nine  of  the  laws  of  nineteen  hundred  and  eleven,  and  chapter  one 
Imndred  and  forty-five  of  the  laws  of  nineteen  hundred  and  thirteen  shall 
be  abolished  and  the  powers  and  duties  of  the  commissioner  of  labor,  then 
in  office,  shall  cease.  The  offices  of  first  and  second  deputy  commissioners 
of  labor  are  hereby  abolished,  and  the  powers  and  duties  of  the  said  deputy 
commissioners  then  in  office  shall  cease  upon  the  appointment  by  the  industrial 
commission  of  the  deputy  industrial  commissioners  herein  provided  for. 

Sec.  4.  Workmen's  compensation  commission  abolished.  The  state  work- 
men's compensation  commission  created  as  provided  in  section  sixty  of  the 
workmen's  compensation  law  is  hereby  abolished,  and  the  terms  of  the  office 
of  the  members  of  such  commission  then  in  office  shall  cease  on  the  appoint- 
ment and  qualification  of  the  members  of  the  industrial  commission.  All 
the  powers,  duties,  obligations  and  liabilities  conferred  or  imposed  by  law 
upon  the  workmen's  compensation  commission  by  the  workmen's  compensation 
law  or  any  other  statute  are  hereby  conferred  and  imposed  upon  the  state 
industrial  commission  and  such  commission  may  exercise  and  perform  such 
powers  and  duties  and  shall  be  subject  to  such  obligations  and  liabilities 
in  the  same  manner,  to  the  same  extent  and  with  the  same  force  and  effect 
as   would  have   been   the    case   had   the   workmen's   compensation   commission 


—  58  — 

been  continued  in  office.  For  the  purpose  of  exercising  such  powers,  per- 
forming such  duties,  being  subjected  to  such  obligations  and  liabilities,  the 
state  industrial  commission  shall  be  deemed  to  be  a  continuation  of  such 
workmen's  compensation  commission.  The  offices  of  secretary  to  the  work- 
men's compensation  commission  and  of  the  deputies  appointed  by  the  work- 
men's compensation  commission,  are  hereby  abolished;  and  the  powers  and 
duties  of  such  officers  then  in  office  shall  cease  upon  the  appointment  and 
qualification  of  the  members  of  the  industrial  commission. 

Sec.  5.  All  other  officers,  assistants,  inspectors  and  employees  of  the 
department  of  labor  or  the  workmen's  compensation  commission  in  office 
when  this  act  takes  effect  shall  continue  in  office  until  removed  by  the  in- 
dustrial commission  or  until  their  offices  are  abolished  as  provided  by  law. 

Sec.  6.  Rules  and  regulations  continued;  pending  actions  or  proceedings. 
The  rules,  regulations  and  orders  of  the  commissioner  of  labor,  the  industrial 
board,  or  the  workmen's  compensation  commission  in  force  when  this  act 
takes  effect  enacted  or  promulgated  pursuant  to  law  are  continued  in  full 
force  and  shall  be  operative  until  modified,  superseded  or  repealed  by  the 
industrial  commission.  This  act  shall  not  affect  pending  cases  or  proceedings, 
civil  or  criminal,  brought  by  or  against  the  commissioner  of  labor  or  the 
workmen's  compensation  commission.  All  proceedings,  hearings,  investiga- 
tions and  other  matters  pending  before  the  commissioner  of  labor,  the  in- 
dustrial board,  or  the  workmen's  compensation  commission  shall  be  con- 
tinued and  brought  to  a  final  determination  before  the  industrial  commission 
in  the  same  manner  as  though  the  commissioner  of  labor,  the  industrial  boarti 
and  the  workmen's  compensation  commission  had  been  continued  in  office. 
Any  award  or  determination  made  by  the  workmen's  compensation  commis- 
sion prior  to  the  taking  effect  of  this  act  shall  have  the  same  force  and 
effect  as  tliough  the  workmen's  compensation  connnission  had  been  continuetl 
in  office. 

Sec.  7.  Construction.  Whenever  the  term  "department  of  labor,"  "com- 
missioner of  labor,"  "industrial  board,"  or  "workmen's  compensation  commis- 
sion" occurs  in  any  law  or  in  any  rule  or  regulation  made  in  pursuance  of 
law,  or  whenever  in  any  law  reference  is  made  to  such  department,  com- 
missioner, board,  commission  or  officer,  such  term  or  reference  shall  be  deemed 
to  mean  the  industrial  commission  as  established  by  this  act. 

Sec.  8.  Repeal.  Sections  sixty  and  sixty-one  of  the  workmen's  com- 
pensation law  are  hereby  repealed. 

Sec.  9.     This  act  shall  take  effect  immediately. 
vState  of  New  York 
Office  of  the  Secretary  of  State,  ss: 

I  have  compared  the  preceding  with  the  original  law  on  file  in  this  office, 
and  do  hereby  certify  that  the  same  is  a  correct  transcript  therefrom,  and 
of  the  whole  of  said  original  law. 

Given  under  my  hand  and  seal  of  office  of  the  Secretary  of  State,  at 
the  City  of  Albany,  this  seventh  day  of  June,  in  the  year  one  thousand  nine 
hundred  and  fifteen. 

C.  W.  TAFT, 
Second  Deputy  Secretary  of  State. 


—  59  — 
CHAPTER   16,  LAWS   OF    1914 

AN  ACT 

TO  AMEND  THE  INSURANCE  LAW,  IN  RELATION  TO  THE 
APPROVAL  OF  PREMIUM  RATES  OF  CORPORATIONS  AND 
ASSOCIATIONS  TRANSACTING  THE  BUSINESS  OF  WORKMEN'S 
COMPENSATION   INSURANCE. 

The  People  of  the  State  of  New  York,  represented  in  Senate  and  Assembly, 
do  enact  as  follows: 

Section  1.  Article  one  of  chapter  thirty-three  of  the  laws  of  nineteen 
hundred  and  nine,  entitled  "An  act  in  relation  to  insurance  corporations, 
constituting  chapter  twenty-eight  of  the  consolidated  laws,"  is  hereby  amended 
by  adding  at  the  end  thereof  a  new  section,  to  be  section  sixty-seven,  to 
read  as  follows: 

Sec.  67.  Approval  of  premium  rates.  Every  insurance  corporation  or 
association,  except  the  state  insurance  fund  as  administered  by  the  state 
workmen's  compensation  commission,  authorized  to  transact  business  in  this 
state,  which  insures  employers  against  liability  for  compensation  under  the 
workmen's  compensation  law,  shall  file  with  the  superintendent  of  insurance 
its  classification  of  risks  and  premiums  relating  thereto,  and  any  subsequent 
proposed  classification  of  risks  and  premiums,  together  with  basis  rates  and 
schedides,  if  a  system  of  schedule  rating  be  in  use,  none  of  which  shall  take 
effect  until  the  superintendent  of  insurance  shall  have  approved  the  same 
as  adequate  for  the  risks  to  which  they  respectively  apply.  The  superintendent 
of  insurance  may  withdraw  his  approval  of  any  jiremium  rate  or  schedule 
made  by  any  insurance  cori)oration  or  association  if,  in  his  judgment,  such 
premium  rate  or  schedule  is  inadequate  to  provide  the  necessary  reserves. 

Sec.  2.     This   act   shall  take  effect   innuediately. 

Approved  by  Governor,  March  5,  1914. 


—  60  — 

CHAPTER  832,  LAWS  OF   1913 

AS  AMENDED  BY  CHAPTER  50G,  LAWS  OF  1915,  AND  BY 

CHAPTER  393,  LAWS  OF  1916 

AN  ACT 

TO  AMEND  THE  INSURANCE  LAW,  IN  RELATION  TO  THE 
CREATION  OF  MUTUAL  COMPANIES  TO  INSURE  EMPLOYERS 
AGAINST  LOSS,  DAMAGE  OR  COMPENSATION  RESULTING 
FROM  INJURIES  SUFFERED  BY  EMPLOYEES  OR  OTHER 
PERSONS    FOR    WHICH    THE    PERSON    INJURED    IS    LIABLE. 

The  people  of  the  State  of  New  York,  represented  in  Senate  and  Assembly, 
do  enact  as  follows: 

Section  1.  Chapter  thirty-three  of  the  laws  of  nineteen  hundred  and  nine, 
entitled  "An  act  in  relation  to  insurance  corporations,  constituting  chapter 
twenty-eight  of  the  consolidated  laws,"  amended  by  Chapter  832,  Laws  of 
1913,  is  further  amended  by  Chapter  506,  Laws  of  1915,  to  read  as  follows: 

ARTICLE  5-A 

Mutual  Empioykrs'  Liability  and  Workmen's  Compensation  Corporations 

Section  185.  Incorporation. 

18G.  Completion  of  organization. 

187.  Directors   and  officers. 

188.  Meetings. 

189.  Assessments. 

190.  Dividends. 

191.  Reserves;    suspension;    cancellation    and    reinstatement    of    cer- 

tificate. 

192.  Reports  to  and  examinations  by  superintendent. 

193.  Prevention  of  accidents. 

194.  Authorization  of  foreign  mutual  insurance  corporations. 

Sec.  185.  Incorporation.  Thirteen  or  more  persons  may  become  a  cor- 
poration for  the  purpose  of  insuring  on  the  mutual  plan  against  loss  or 
damage  resulting  from  accident  to  or  injury  suffered  by  an  employee  or 
other  person  and  for  which  the  person  insured  is  liable,  or  the  liability  of 
the  employer  to  pay  compensation  to  his  employees,  or  the  compensation  of 
employees  under  any  workmen's  compensation  law,  or  against  loss  or  damage 
caused  by  a  truck,  wagon  or  other  vehicle  propelled  by  steam,  gas,  gasoline, 
electric,  mechanical  or  other  power  or  drawn  by  horses  or  mules,  used  in 
trade  or  manufacture  and  owned  by  any  such  person  to  the  property  of 
another  for  which  loss  or  damage  the  person  insured  is  liable,  by  making 
and  filing  in  the  office  of  the  superintendent  of  insurance  a  certificate  to  be 
signed  by  each  of  them,  stating  their  intention  to  form  a  corporation  for  the 
])ur[)ose  named,  and  setting  forth  a  copy  of  the  charter  which  they  propose 
to  adopt,  which  shall  state  the  name  of  the  proposed  corporation,  the  place 
where  it  is  to  be  located,  the  mode  and  manner  in  which  its  corporate  powers 
are  to  be  exercised,  the  number  of  directors,  the  manner  of  electing  its 
directors  and  officers,  the  time  of  such  elections,  the  manner  of  filling  vacan- 
cies, the  names  and  post  office  addresses  of  the  directors  who  will  serve  until 
the  first  annual  meeting  of  such  corporation,  and  such  further  particulars 
as  may  be  necessary  to  explain  and  make  manifest  the  objects  and  purposes 
of   the  corporation.     Such  certificate   shall   be   proved   or   acknowledged   and 


—  61  — 

recorded  in  a  book  kept  for  that  purpose  by  the  superintendent  of  insurance 
and  a  certified  copy  thereof  shall  be  delivered  to  the  persons  executing  the 
same. 

Sec.  186.  [As  amended  by  Chapter  506,  Laws  of  1915.]  Completion  of 
organization.  Upon  receipt  of  a  certified  copy  of  the  certificate  of  incor- 
poration from  the  superintendent  of  insurance,  the  persons  signing  such 
certificate  may  open  books  to  receive  applications  for  membership  therein. 
No  such  corporation  shall  transact  any  business  of  insurance  unless  the 
annual  premium  cost  on  the  insurance  applied  for  shall  be  not  less  than 
twenty-five  thousand  dollars  at  the  minimum  annual  rates  approved  by  the 
superintendent  of  insurance  and  until  at  least  forty  employers  employing 
not  less  than  twenty-five  hundred  employees;  or  thirty  employers  employing 
not  less  than  five  thousand  employees;  or  twenty  employers  employing  not 
less  than  seven  thousand  five  hundred  employees;  or  ten  employers  employing 
not  less  than  ten  thousand  employees,  have  become  members  of  such  corpora- 
tion and  applied  for  and  agreed  to  take  insurance  therein,  covering  the 
liability  of  such  employers  to  their  employees  for  accidents  to  or  injuries 
suffered  by  such  employee  nor  until  the  facts  specified  in  this  section  have 
been  certified  under  oath  by  at  least  three  of  the  persons  signing  the  original 
certificate,  to  the  superintendent  of  insurance,  and  the  superintendent  of 
insurance  has  issued  a  license  to  such  corporation  authorizing  such  corpora- 
tion to  begin  writing  the  insurance  specified  in  this  article.  The  superintendent 
of  insurance  must  be  satisfied  that  the  membership  list  of  the  corporation  is 
genuine,  and  that  every  member  thereof  will  take  the  policies  as  agreed  by 
him  within  thirty  days  of  the  granting  of  the  license  to  the  corporation  by 
the  superintendent  of  insurance  to  issue  policies.  If  at  any  time  the  number 
of  members  or  the  number  of  employees  who  are  employed  by  the  members 
of  the  corporation  falls  below  the  number  required  by  this  section,  no  further 
policies  shall  be  issued  by  the  corporation  until  other  employers  have  made 
bona  fide  applications  for  insurance  therein,  who,  together  with  the  existing 
members,  amount  to  not  less  than  forty  employers  who  employ  not  less  than 
twenty-five  hundred  employees,  or  thirty  employers  who  employ  not  less  than 
five  thousand  employees,  or  twenty  employers  who  employ  not  less  than  seven 
thousand  five  hundred  employees,  or  ten  employers  who  employ  not  less  than 
ten  thousand  employees,  and  in  the  event  that  such  applications  for  insurance 
shall  not  be  obtained  within  a  reasonable  time,  to  be  fixed  by  the  superintend- 
ent of  insurance,  such  superintendent  may  take  the  proceedings  against  such 
corporation  under  section  sixty-three  of  this  chapter  to  the  same  effect  as 
if  clause  h  of  subdivision  one  of  such  section  was  specifically  applicable  to 
corporations  organized  under  this  article. 

The  members  of  the  corporation  shall  be  policyholders  therein,  and  when 
any  member  ceases  to  be  a  policyholder  he  shall  cease,  at  the  same  time,  to 
be  a  member  of  the  corporation.  A  corporation,  partnership,  association  or 
joint-stock  company  may  become  a  member  of  such  insurance  corporation 
and  may  authorize  another  person  to  represent  it  in  such  insurance  cor- 
poration, and  such  representative  shall  have  all  the  rights  of  any  individual 
member.  Any  person  acting  as  employer  in  the  capacity  of  a  trustee  may 
insure  in  such  corporation  and  as  such  trustee  may  assume  the  liabilities  and 
be  entitled  to  the  rights  of  a  member,  but  shall  not  be  personally  liable  upon 
such  contract  of  insurance. 

Such  corporation  may  borrow  money  or  assume  liability  in  a  sum  sufficient 
to  defray  the  reasonable  expenses  of  its  organization. 

Sec.  187.     Directors   and   officers.     Any  such   corporation  shall  have  not 


—  62  — 

less  than  thirteen  directors,  and  such  officers  as  shall  be  provided  in  the 
certificate  of  incorporation  or  by  the  by-laws  made  by  the  members.  The 
directors  shall  be  elected  annually  by  the  votes  of  the  members.  All  except 
two  of  the  directors  of  the  corporation  elected  after  the  organization  of  the 
corporation  is  completed  and  it  is  authorized  to  begin  to  issue  insurance 
policies  shall  be  members  of  the  corporation.  All  the  officers  except  the 
secretary,  assistant  secretary  and  the  actuar}^  must  be  members  of  the  board 
of  directors. 

Sec.  188.  [As  amended  by  Chapter  506,  Laws  of  1915.]  Meetings;  basis 
of  riglit  to  vote.  At  all  meetings  of  the  members  of  the  corporation  each 
member  shall  have  one  vote  and  one  additional  vote  for  every  five  hundred 
cm})loyees  or  major  fraction  thereof,  covered  by  the  policy  held  by  such 
member  in  the  corporation,  provided  that  no  member  shall  have  more  than 
twenty  votes.  The  number  of  votes  of  a  member  shall  be  determined  by  the 
average  number  of  employees  at  work  and  covered  by  said  member's  policy 
in  the  corporation  during  the  last  six  months  from  a  date  not  more  than  ten 
days  immediately  prior  to  the  date  of  any  such  meeting.  Before  any  member 
shall  be  permitted  to  cast  more  than  one  vote  at  any  meeting  of  members  he 
shall  file  with  the  secretary  an  affidavit  showing  the  average  number  of 
employees  at  work  during  the  preceding  six  months  covered  by  the  employer's 
l)olicy  of  insurance. 

Sec.  189.  Assessments.  The  corporation  may  in  its  by-laws  and  policies 
fix  the  contingent  mutual  liability  of  the  members  for  the  payment  of  losses 
and  expenses  not  provided  for  by  its  cash  funds;  but  such  contingent  lia- 
bility of  a  member  shall  not  be  less  than  an  amount  equal  to  and  in  addition 
to  the  cash  premium  written  in  the  policy.  If  the  corporation  is  not  possessed 
of  cash  funds  above  its  unearned  premium  sufficient  for  the  paj^ment  of 
incurred  losses  and  expenses,  it  shall  make  an  assessment  for  the  amount 
needed  to  pay  such  losses  and  expenses  upon  the  members  liable  to  assess- 
ment therefor,  in  proportion  to  their  several  liability.  Every  member  shall 
be  liable  to  pay  and  shall  pay  his  proportionate  part  of  any  assessment  which 
may  be  laid  by  the  corporation  in  accordance  with  law  and  his  contract,  on 
account  of  losses  and  expenses  incurred  while  he  was  a  member,  if  he  is 
notified  of  such  assessment  within  one  year  after  the  expiration  of  his  policy. 
All  assessments  shall  be  based  upon  present  values  of  all  future  payments, 
and  all  proposed  premium  assessments  shall  be  filed  in  the  insurance  depart- 
ment and  shall  not  take  effect  until  approved  by  the  superintendent  of 
insurance,  after  such  investigation  as  he  may  deem  necessary.  All  funds 
of  the  corporation  and  the  contingent  liability  of  the  members  thereof  shall 
be  available  for  the  payment  of  any  claim  against  the  corporation. 

Sec.  190.  [As  amended  by  Chapter  393,  Laws  of  1916.]  Dividends.  The 
board  of  directors  may,  from  time  to  time,  fix  and  determine  the  amount  to 
be  paid  as  a  dividend  upon  policies  expiring  during  each  year  after  retaining 
sufficient  sums  to  pay  all  the  compensation  and  other  policy  obligations  which 
may  be  payable  on  account  of  the  injuries  sustained  and  expenses  incurred. 
Such  dividend  shall  not  take  effect  nor  be  distributed  until  approved  by  the 
superintendent  of  insurance  after  such  investigation  as  he  may  deem  necessary. 
Any  such  corporation  may  hold  cash  assets  in  excess  of  its  liabilities,  but 
such  excess  shall  be  limited  to  one  hundred  per  centum  of  its  reserves  for 
losses  and  expenses  incurred,  and  may  be  used  from  time  to  time  in  payment 
of  losses,  dividends  and  expenses. 

Sec.  191.  [As  amended  by  Chapter  506,  Laws  of  1915.]  Reserves;  sus- 
pension; cancellation  and  reinstatement  of  certificate.     Such  corporation  shall 


-  63  — 

be  required  to  maintain  the  same  reserves  for  the  protection  of  policyholders 
and  emplo3^ees  who  may  have  a  right  of  action  directly  against  such  cor- 
poration as  are  required  to  be  maintained  by  stock  insurance  corporations  in 
relation  to  the  same  class  of  insurance,  except  that  reserves  for  liability  for 
insurance  of  compensation  under  the  workmen's  compensation  law  shall  be 
prescribed  by  the  superintendent  of  insurance,  and  the  superintendent  of 
insurance  may  suspend  or  cancel  the  certificate  issued  by  him  authorizing 
said  corporation  to  transact  such  insurance  business  at  any  time  when  in  the 
judgment  of  the  superintendent  of  insurance  the  reserves  of  said  corporation 
are  insuflScient  to  insure  and  secure  the  payment  of  its  policy  obligations, 
and  the  superintendent  of  insurance  may  reinstate  or  renew  said  certificate 
whenever  by  assessment  or  otherwise  said  reserves  have  been  increased  to 
a  sum  sufficient  in  the  judgment  of  the  superintendent  of  insurance  to  insure 
and  secure  the  payment  of  the  policy  obligations  of  such  corporation. 

Sec.  192.  Reports  to  and  examinations  by  superintendent  of  insurance. 
Every  such  corporation  shall  make  reports  to  the  superintendent  of  insurance 
at  the  same  times  and  in  the  same  manner  as  are  required  from  stock  insur- 
ance companies  transacting  the  same  kind  of  business,  and  the  superintendent 
of  insurance  may  examine  into  the  affairs  of  such  corporation  at  any  time, 
either  personally  or  by  any  duly  authorized  examiner  appointed  by  him, 
and  the  superintendent  of  insurance  must  make  such  an  examination  into  the 
affairs  of  said  corporation  at  least  once  in  every  two  years. 

Sec.  193.  Prevention  of  accidents.  The  board  of  directors  shall  make 
and  enforce  reasonable  rules  and  regulations  not  in  conflict  with  the  laws 
of  the  state  for  the  prevention  of  accidents  to  the  employees  on  the  premises 
of  members,  and  for  this  purpose  the  inspectors  of  the  corporation  shall  have 
free  access  to  all  such  premises  during  regular  working  hours.  The  policy 
of  any  member  neglecting  to  provide  suitable  safety  appliances  as  provided 
by  law  or  as  required  by  the  board  of  directors  may  be  canceled  and  termin- 
ated by  the  board  of  directors  after  giving  to  such  member  notice  of  can- 
cellation ten  days  prior  to  its  becoming  effective. 

Sec.  194.  [As  amended  by  Chapter  393,  Laws  of  1916.]  Authorization 
of  foreign  mutual  insurance  corporations.  After  January  first,  nineteen 
hundred  and  seventeen,  the  superintendent  of  insurance  may,  in  his  discretion, 
issue  a  certificate  of  authority  to  a  mutual  corporation  organized  under  the 
laws  of  another  state  to  do  such  insurance  in  this  state;  provided  that,  in  no 
event,  shall  authority  be  given  to  any  such  mutual  corporation  to  do  other 
kinds  of  business  than  those  specified  in  this  article.  Such  corporation  shall 
be  required  to  maintain  the  same  reserves  for  the  protection  of  members 
and  employees  as  are  required  for  domstic  corporations  authorized  to  transact 
the  same  kind  of  insurance,  and  shall  at  all  times  have  and  maintain  a  surplus 
over  and  above  all  liabilities,  including  unearned  premiums  and  loss  reserves, 
of  not  less  than  one  hundred  thousand  dollars.  If  any  such  corporation 
shall  not  at  all  times  have  and  maintain  the  surplus  and  reserves  hereby 
required,  the  superintendent  of  insurance  may,  at  any  time,  in  his  discretion, 
revoke  its  certificate  of  authority  to  do  business  in  this  state. 
Sec.  2.     This  act  shall  take  effect  immediately. 

Approved  December  23,  1913. 


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